Solana, formerly called the “Ethereum Killer,” has seen the value of its native token SOL fall by around 47% over the course of the last week, which has been overshadowed by the FTX train crash.
Alameda Research’s second biggest stake is SOL, which was strongly marketed by previous FTX CEO Sam Bankman-Fried, who left today.
According to a previous article by CoinDesk, as of June 30, 2022, Alameda had $292 million in “unlocked SOL,” $863 million in “locked SOL,” and $41 million in “SOL collateral.”
Akeel Qureshi, the main developer of Solana-based Hubble Protocol and Kamino Finance, told Blockworks that the current crypto crisis precipitated by FTX’s bankruptcy filing resembles the 2008 financial collapse.
“The immediate aftermath of the bankruptcy declaration was contagion, and we’re witnessing another leg down for assets related with FTX and Alameda,” Qureshi said. “SOL, the native token of Solana, has suffered a blow as a result of Sam Bankman-prior Fried’s support for the network in an open manner.”
In fact, according to a tweet by user weremeow, one of the greatest obstacles facing the Solana ecosystem is that the bankrupt FTX produced wrapped Sollet tokens such as soBTC.
“These tokens were meant to be backed 1-1 by BTC or ETH and were introduced very early in the Solana DeFi cycle to assist develop liquidity in the sector,” they tweeted. In contrast to wBTC, however, there was no official procedure, and nobody knows whether FTX still has the underlying assets.
As all major Solana-based DeFi platforms use soBTC assets as collateral, if it is shown that soBTC no longer has any underlying assets supporting its value, the resulting contagion impact might be considerably more severe than anticipated.
Blockworks Research analyst Spencer Hughes weighed in on the topic, stating, “Solana presently has $271 million in soBTC and $612 million in soETH on the network. Supposedly, some assets were bridged from the Ethereum network. It is unknown precisely who is supporting these assets, although many believe it is FTX.