FTX FTT Token Tumult Costs Solana (SOL) Big Time
The recent tumult surrounding crypto exchange FTX and the FTT token has resulted in big losses for Solana (SOL).
As the crypto world continues to be rocked by the news of FTX's impending sale of all its FTT tokens, one big loser has emerged: Solana (SOL). The token has seen a massive price drop of 12% over the last 24 hours, as market observers continue to speculate about the implications of the sale. With FTX's future up in the air, it remains to be seen how SOL will fare in the coming days and weeks.
Even though the FTT token is currently posting a loss of just under -3%, the SOL sell-off doesn't seem to be driven by that. Just a few days ago, SOL experienced a massive price spike after Google announced the launch of a Solana validator. So it's possible that investors are taking profits after the recent price spike, or that there's simply more selling pressure on SOL than there is on other tokens at the moment.
It is clear that the market is still responding to the news of Google's potential partnership with Solana. Despite the sell-off today, the token is still up 8% from last week. It will be interesting to see how the market reacts in the coming days and weeks.
Is Solana a victim of the FTX drama?
It's amusing to see the alleged "FTX/Alamada/Solana scam" unfold after two years, according to Ethereum core dev Eric Conner. Conner took to Twitter to denounce the so-called "Ethereum killer", saying that it's far from being able to kill Ethereum. The Ethereum community has been quick to echo Conner's sentiment, with many users pointing out the numerous red flags that have been raised about the project.
It’s so fucking hilarious watching you all realize the FTX/Alamada/Solana scam 2 years after most of us called it out and got lambasted for doing so.
— eric.eth (@econoar) November 7, 2022
There are concerns that an impending FTX implosion could have a cascading effect on SOL, with users warning that investors should be cautious. It remains to be seen what will happen, but it is definitely something to keep an eye on.
Pay attention to #Solana , ftx will have to sell to cover expenses. If they are having issues
— the BERG (@ADAMBERGMANshow) November 7, 2022
I am excited to see that Solana tokens are among the more significant assets on FTX's balance sheet. This shows that the company is committed to supporting Solana and its continued development. I believe that Solana has a bright future and FTX's support will help it reach its full potential.
With a large amount of SOL tokens in its portfolio, the exchange is well positioned to benefit from the growth of the cryptocurrency market. SOL tokens are a key part of the ecosystem and are used to power the decentralized exchange. The exchange is committed to providing a safe and secure platform for its users and is constantly innovating to stay ahead of the curve.
It is unclear at the moment how FTX's sale of SOL tokens will affect the price of the FTT token. However, it is possible that the sale could be a drag on the price of SOL, as it is the only known relationship between FTX and Solana at the moment.
There is no doubt that the current situation with Solana is a dilemma. However, it is important to remember that speculation could be behind the current situation. After all, as described at the beginning, FTX has a deep connection with SOL. If there is a prolonged bank run, it is very likely that the Solana token will also take a big hit.
Other analysts have also noted that FTX's selling pressure has affected other altcoins besides SOL, including CHZ, LOOM, SHIB, LINK, and DYDX. It remains to be seen how long this pressure will continue or what effect it will have on the overall cryptocurrency market.