The PoS and PoH cryptocurrency Solana is in a ‘crucible moment’ following the FTX debacle, which has sent it down nearly 55% in the last seven days. The Solana Foundation has now revealed the full extent of its financial ties to FTX and Alameda Research. It has approximately 3.43 million FTT tokens and 134.54 million SRM tokens stranded on FTX.
The Foundation stated in a blog post that it held the aforementioned tokens when withdrawals were suspended on November 6. At current market prices, these assets are worth nearly $29 million and $4 million, respectively. However, one day before the freeze, they were worth approximately $107 million and $83 million, respectively.
It also stated that as of November 10, 2022, the total exposure to Sollet-based assets in circulation on Solana is valued at approximately $40 million. The Project Serum team created Sollet as a wallet extension for the Solana network.
Solana has long been a favorite of Bankman-Fried’s FTX and Alameda Research, and its proximity has many concerned about the state of the Solana ecosystem.
According to the blog, “Most of the largest DeFi projects on Solana had limited or no exposure to FTX, based on a recent assessment by Solana Foundation.”
The largest asset listed on the battered FTX balance sheet was $2.2 billion in SRM, and an apparent $600 million hack on the exchange pushed down SRM prices.
The Solana Foundation had about $1 million in cash or equivalent assets on FTX, which accounted for less than 1% of its funds. Its assets also include about 3.24 million shares of FTX Trading LTD common stock.
Furthermore, FTX and Alameda Research purchased over 50.5 million SOL, with a substantial portion of that SOL locked up in monthly unlock schedules that run through January 2028.