Although the infamous FTX Crash took place days ago, the after-effects linger on the market. In the midst of this, several assets associated with the stock market fell along with the entire market. While Bitcoin [BTC] revisited two-year lows, other assets like FTX Token [FTT] and Solana [SOL] drowned in corrections.
Solana’s demise surprised the vast majority of the market. With speculation at the forefront, the Solana Foundation decided to shed light on its exposure to the FTX crash. In a blog post, the foundation noted how it raised $1 million in cash or cash equivalents on the exchange. This was before FTX decided to pause recordings.
Six months after the introduction of Mainnet Beta, in August 2020, FTX/Alameda made the first acquisition of SOL from the Solana Foundation.
The Foundation further confirmed that this was less than 1 percent of the money, minimizing the impact of the crash on the platform. However, as the foundation continued to update its balance sheet, the Solana Foundation addressed its exposure to the troubled platform.
It Reportedly included approximately 3.24 million FTX Trading LTD common stock, approximately 3.43 million FTT and approximately 134.54 million SRM. It should be noted that these were worth over $160 million before things went down.
In addition, Sollet Bitcoin, a tokenized version of Bitcoin on Solana, was also affected.
FTX was in charge of holding the Bitcoin backing these tokens, but according to the November 10 balance sheet findings, the exchange had no Bitcoin on the asset side. As of that point, it had $40 million invested in Sollet-based assets like soBTC, according to the Solana Foundation. That said it further “the status of the underlying assets is unknown at this time.”
Solana drops below $14
As mentioned earlier, Solana was among the hardest hit assets after the FTX crash. While trading as low as $11.01 earlier this week, it managed to jump back to $13.99 at the time of writing.
It should be noted that the current level was reached after falling from a high of $38.55. As of this writing, SOL continues to trade 94.62 percent below its all-time high of $260.06.
