Solana tumbles after  FTX Bankruptcy

About FTX

At one time, FTX was the leading cryptocurrency exchange in the world. Infact, by volume FTX was the second largest exchange after Binance sometime back.

Founder of FTX

Sam Bankman-Fried is the founder of FTX. He's also the founder of Alameda Research, the investment arm of FTX.

FTX Bankruptcy

In November 2022, FTX filed for bankruptcy after the crash of its native FTT token which was linked to all its assets. A high leveraged model.

About Solana

Solana with native SOL token is one of the leading blockchains with booming ecosystem

Why Solana is crashing?

Sam was an early investor in Solana Labs. FTX & Alameda Research hold over a $1 billion SOL. After the fall, SOL was bound to crash.

The incoming Big dump

SOL has crashed over 90% from  its peak. FTX bankruptcy may result in sell-off of SOL tokens. Leading to fears of Solana breakdown.

FTX centralized control

Top projects on Solana like Serum DEX are heavily funded  by FTX. Another reason why users are fearful of its collapse.

Fear of Uncertainty

The panic selling is back again after FTX heads towards near bankruptcy. Next target will be the altcoins bought by Sam as part of his portfolio.

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