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Solana crypto token loses most of its worth in 2022, weighing on FTX collapse

Solana crypto token loses most of its worth in 2022, weighing on FTX collapse

Solana crypto token loses most of its worth in 2022, weighing on FTX collapse

NEW YORK (Reuters) – The worth of Solana, a cryptocurrency token championed by FTX founder Sam Bankman-Fried, fell 10.36% on Wednesday and is down 94.2% to this point in 2022.

FTX’s decline has rippled throughout the trade, disrupting liquidity at corporations with publicity to what was as soon as one of many world’s largest crypto exchanges.

Solana, or SOL, is a token behind the upstart Solana blockchain, which helps sensible contracts, together with non-fungible tokens, and has emerged as a rival to the Ethereum blockchain.

Bankman-Fried, who is anticipated to enter a plea subsequent week to prison prices that he defrauded buyers and looted billions of {dollars} in buyer funds at FTX, usually praised Solana. FTX and Alameda, Bankman-Fried’s buying and selling agency, maintain Solana tokens on their stability sheets.

Though Solana has no direct ties to FTX, and had restricted publicity to the failed change, its affiliation with Bankman-Fried has been a drag.

“The final drawback with crypto is that its lack of intrinsic worth signifies that values ​​are based mostly on belief and perceived utility. If they’re tied to a selected token, it suffers,” mentioned Steve Sosnick, chief strategist at Interactive Brokers. Strategist Steve Sosnick

A consultant for Solana was not instantly obtainable for remark.

SOL is down 51.14% since November 2 when the joy round FTX began. On the similar time, Ether is down about 21.3% and Bitcoin is down 17.6%.

Serum, or SRM, the decentralized change token of the identical identify created by Bankman-Fried on the Solana blockchain, has fallen 80.5% since Nov. 2, buying and selling at simply 14 cents, in line with coinmarketcap.com.

The whole market capitalization of the cryptocurrency market now stands at $798.4 billion, in line with the web site, down from a peak of $3 trillion in November 2021.

(Reporting by John McCrank; Modifying by David Gregorio)



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