NEW YORK (Reuters) – The worth of Solana, a cryptocurrency token that had been lauded by FTX founder Sam Bankman-Fried, fell 10.36% on Wednesday, and is down 94.2% up to now in 2022.
The collapse of FTX has rippled throughout the trade, hobbling liquidity at companies with publicity to what was as soon as one of many world’s greatest crypto exchanges.
Solana, or SOL, is the 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 legal costs he defrauded traders and looted billions of {dollars} in buyer funds at FTX, ceaselessly praised Solana. FTX and Alameda, Bankman-Fried’s buying and selling agency, held Solana tokens on their steadiness sheets.
Whereas Solana has no direct relation to FTX, and had restricted publicity to the failed change, its affiliation with Bankman-Fried has been a drag.
“The overall drawback with crypto is that its lack of intrinsic worth implies that values are based mostly on confidence and perceived utility. If these undergo in relation to a particular token, then it suffers,” mentioned Steve Sosnick, chief strategist at Interactive Brokers.
A consultant for Solana was not instantly obtainable for remark.
SOL has dropped 51.14% because the furor round FTX started unfolding on Nov. 2. In the identical interval, ether has fallen about 21.3% and bitcoin 17.6%.
The worth of Serum, or SRM, the token for the decentralized change of the identical identify created by Bankman-Fried on the Solana blockchain, is down 80.5% since Nov. 2, buying and selling at simply over 14 cents, in line with coinmarketcap.com.
The entire market capitalization of the cryptocurrency market now stands at $798.4 billion, in line with the web site, down from a peak of over $3 trillion in Nov. 2021.
(Reporting by John McCrank; Enhancing by David Gregorio)
Source link
