The Solana community remains optimistic despite the FTX case

The Solana community remains optimistic despite the FTX case

Solana, once written as an "Ethereum killer", saw the price of its local token-sol-tanker by about 47 % last week, dominated by the FTX access.

Sol is the Second largest participation from Alameda Research and was recovered by the former FTX CEO Sam Bankman-Fried today is strongly encouraged.

after an earlier report from Coindesk held Alameda on June 30, 2022. US dollar to "Unlocked Sol", $ 863 million on "Locked Sol" and $ 41 million in "Sol security".

akeel QURESHI, main employee of the Hubble Protocol and Kamino Finance based in Solana, told Blockworks that the current cryptocrisy, which results from FTX's bankruptcy application, reminded of the collapse of the banks during the 2008 financial crisis.

FTX attachment effects

"The consequences of the bankruptcy notice were an immediate contagion and we are watching a further decline in the assets associated with FTX and Alameda," said Qureshi. "Sol, the native token of Solana, suffered another blow due to the earlier open support of the network by Sam Bankman-Fried."

According to a post by the Twitter user Weremow, one of the greatest challenges for the Solana ecosystem is that packaged toll tokens like SOBTC are issued by the now insolvent FTX.

"These tokens were introduced very early in the Solana Defi cycle to generate liquidity in the room and should be supported 1: 1 by BTC or ETH," they tweeted. "But unlike WBTC, there was no formal process and nobody knows whether FTX still has the underlying assets."

Since all large Solana-based defi platforms have SobtC assets as security, the infection effect could be much worse than expected if it turns out that SOBTC no longer has underlying assets that support its value.

Weighing up the situation, Blockworks-research Analyst Spencer Hughes said: "Solana currently has 271 million dollar by Sobtc and $ $ in the network. that it is ftx. As a result, he added: "SOBTC is currently trading at $ 13.5,000, a steep discount of 25 % compared to the price of BTC. At a certain point in time, SOBTC was traded for $ 3,400. In the meantime, the Defi credit platform has been paused by SOBTC secured loans."

At the beginning of this week, Solend fought to liquidate a whale account that had stalled. Although the Solend Discord that the situation "now looked very bad".

liquidity bottlenecks are not the only concerns with which the Solana community is confronted. This announced the Solana Foundation at the beginning of this week Sol would be stopped by the ecosystem, which was a poorly teased step Quickly vice .

Optimism of the community

Despite these numerous challenges since the FTX case, many builders in the ecosystem remain resistant.

Tiffany Huang, marketing manager at Magic Eden, the largest NFT marketplace on Solana, told Blockworks: "Despite these developments, we remain as hopeful as always in terms of Solana's decisive role in building a decentralized ecosystem."

"While we collect the pieces, we will continue to build out of deep faith. We remain optimistic about the future of Solana and saw how the community came together to remember the incredible projects that have come onto the market," said Huang.

This feeling is shared by Jules Mossler, Chief Marketing Officer at Metablex Studios, the block works said: "We can now see that projects support each other and plan the next chapter of reinvestment together, and we will be right there."

In the past few days, a wave of supporting crypto twitter has also been observed.

Co -founder of Solana Labs Anatoly Yakovenko tweeted "The builders on Solana are unexpected Projects they build can often only be built on Solana. ”

added: "We started in 2020 after the markets had collapsed and the world was sealed off - chewing glass is in our DNA and we will do it together."

QURESHI believes that the recent events that have developed are a tellty sign that reflects the importance of decentralization.

"In the meantime, there are centralized crypto exchanges and lenders with closed books in the crosshairs, but the decentralized financing (Defi) looks stronger than ever due to their transparency and dependence on the storage of their own assets," said QURESHI.

While the ecosystem works to recover from the shock, it is expected that there will be much more high-quality defi projects that will help the ecosystem, he said.

The price for Solana is now about $ 16 and has fallen approximately 9% in the last 24 hours.

Ornella Hernandez carried to report.

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The Solana Community article remains optimistic despite the FTX Fallout.