The FTX crisis is sinking not only the FTX Token (FTT), but associated altcoin projects as well. In this environment, Solana (SOL) also moves with other ‘Sam coins’. The altcoin has lost 54% in a week.
Along with Sam coins, Solana blushed too!
cryptocoin.comAs you follow, the cryptocurrency market is locked into the events around FTX-Binance. Altcoins linked to FTX CEO Sam Bankman-Fried, Alameda Research and FTX have dropped an average of 40% this week. Among them is Solana (SOL), one of the major altcoins. SOL is on track to record its worst daily performance on record. The price of SOL fell more than 40% to around $16 on November 9th. The decline continued Solana hit $14.50. His relationship with the crypto-focused hedge fund Alameda Research and the founder of the crypto exchange FTX, Sam Bankman-Fried, was instrumental in this decline.
Bankman-Fried was an early investor in Solana Blockchain through Alameda Research. On November 8, the entrepreneur’s estimated wealth fell from $15.6 billion to $1 billion, according to the Bloomberg Billionaires Index.
At the heart of this deletion is the near collapse of FTX. Binance, the rival exchange and initial investor of FTX, decided to sell its 2 billion FTX Tokens (FTT) on November 6. In contrast, the price of FTT was down over 85% and was trading at around $3.50 as of Nov.
What about Sam Coins at risk?
Meanwhile, it turned out that half of Alameda Research’s balance sheet of approximately $12 billion as of June 30 was FTT. In addition, allegations that the company owed $ 8 billion on the same day came to the fore. This, in turn, has fueled speculation about the potential bankruptcy of FTT after its massive collapse.
FTT is the new Luna. No bottom buying this time…
As a result, this has increased downward pressure on cryptocurrencies with Alameda Research, FTX and Bankman-Fried or so-called “Sam coins”. So Solana (SOL), Serum (SRM), Aptos (APT), ApeCoin (APE), Bonfida (FIDA), Maps (MAPS) and OX Coin, Helium (HNT) and USD Coin (USDC), which are somehow associated with FTX ) are also at risk.
The price of SOL has dropped more than 55% since Binance FTT decided to drain its reserves. Similarly, Serum (SRM), a decentralized exchange asset running on the Solana Blockchain, tumbled 55% over the same period.
Some altcoins were hit hard after Binance announced its intention to sell FTT. Ren (REN), a decentralized custody project, witnessed a 33% drop in its valuation. Overall, Sam coins, including Raydium (RAY), Bonfida (FIDA), and Maps (MAPS), have dropped an average of 40% since November 6.
Is there still hope for Solana?
Meanwhile, 18.77 million SOL tokens will expire on November 10, according to data from Lookonchain. Therefore, these tokens will also enter circulation. This amount corresponds to approximately 330 million dollars. According to crypto analyst Yashu Gola, it is possible that this will put downward pressure on the price of SOL.
The analyst also evaluates SOL from a technical point of view and draws attention to the following levels. The LEFT has entered the breakout phase of the descending triangle pattern as shown in the chart below. Therefore, it is likely to drop to $14.30. The analyst’s predictions turned out to be correct. Because at press time Solana was trading at $14.56.
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