Solana Foundation reveals minimal exposure to FTX

Solana (SOL) Foundation revealed that it held roughly $1 million worth of cash or its equivalent -less than 1% of its assets- on bankrupt crypto exchange FTX as of Nov. 6, according to a Nov. 14 blog post.

According to the Foundation, it also had 3.43 million FTX tokens (FTT) and 134.54 million Serum (SRM) tokens on the exchange before it stopped processing withdrawals. Serum is a Solana-based decentralized exchange founded by Sam Bankman-Fried (SBF).

The Foundation stated that it also held 3.24 million shares of FTX Trading LTD common stock.

Cumulatively, the crypto assets were worth around $190 million before the exchange’s liquidity crunch, but their value has now dropped to less than $35 million as of press time.

FTX bought over 50 million SOL

The Foundation continued that FTX and its sister company Alameda Research purchased 50.5 million units of Solana between August 2020 and January 2021. These tokens are valued at over $700 million based on the current value of SOL and are scheduled to unlock in 2028.

Apart from that, Solana Labs said it sold over 7.56 million SOL ($106 million) to Alameda Research in 2021 — these tokens will unlock for trading in 2025

Other relationships with FTX

Solana Foundation also detailed other relationships with FTX. The Foundation revealed that the Serum community was working to remove the influence of FTX over the DEX as developers have organized and deployed a new verified build of Serum with a unique program ID.

Another Solana-based protocol affected by the relationship with FTX is Sollet. Sollet issues FTX/Alameda-backed wrapped Bitcoin and Ethereum for the Solana DeFi ecosystem. These assets have rapidly de-pegged as fears within the community are that they are no longer redeemable because of FTX’s bankruptcy.

Coingecko data shows that SoBTC has lost 95% of its value over the last seven days, while SoETH has shed 83%.

Solana Foundation wrote:

“The total exposure to Sollet-based assets on Solana in circulation is valued at approximately $40 million as of Nov 10, 2022. The status of the underlying assets is unknown at this time.”

Meanwhile, CryptoSlate data shows that SOL has hardly reacted to the news; it is up 1.83% over the last 24 hours.

Source : Cryptoslate

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