After the FTX fiasco, the Proof-of-Stake and Proof-of-Hand cryptocurrency known as Solana is now going through a “crucible moment,” as its value has dropped by around 55% in the last week. Now that all of its financial relationships to FTX and Alameda Research have been laid bare, the Solana Foundation has been completely transparent about them. On the FTX blockchain, there is missing roughly 3.43 million FTT tokens and 134.54 million SRM tokens.
In a statement on its blog, the Foundation revealed that it had custody of the aforementioned tokens when, on November 6, withdrawals were temporarily halted. In light of today’s market conditions, the value of these assets comes to close to $29 million and $4 million, respectively. However, on the day before the freeze, their respective values were around $107 million and $83 million.
In addition, it was said that as of the 10th of November in 2022, the entire exposure to Sollet-based assets that were circulating on Solana was valued at around $40 million. As a wallet extension for the Solana network, Sollet was developed by the team working on Project Serum.
Because of its closeness to Alameda Research and Bankman-FTX, Fried’s many people are worried about the condition of the Solana environment. Solana has been a preferred location for a long time.
The blog states that “a recent review by the Solana Foundation found that the majority of the main DeFi initiatives on Solana had either low or no exposure to FTX.”
SRM prices were driven down as a result of what seems to be a cyberattack on the exchange that stole $600 million. The biggest asset reported on the shattered FTX balance sheet was $2.2 billion worth of SRM.
Less than one percent of the Solana Foundation’s total holdings were held in cash and other liquid assets on the FTX exchange. This represented around one million dollars. Additionally, about 3.24 million shares of common stock of FTX Trading LTD are included in its assets.
In addition, FTX and Alameda Research bought approximately 50.5 million SOL, with a significant amount of the SOL being locked up in monthly unlock schedules that will continue until January 2028.
Compiled by Coinbold