Solana supported by Sam Bankman-Fried lost almost all its value in 2022

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Solana, once hailed as a viable rival to Ethereum, has fallen almost 70% since the collapse of Sam Bankman-Fried’s empire and has fallen 94% in 2022. The token was heavily backed by Bankman-Fried, and his companies occupied important positions. on their books. The disgraced crypto founder said over the summer that Solana was the most underrated cryptocurrency. LoadingSomething is being loaded.

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Sam Bankman-Fried touted Solana this summer as the most undervalued cryptocurrency, but the token is now down 94% for the year after falling 70% since FTX collapsed in November.

Solana, which was once hailed as a viable rival to the second most popular crypto Ethereum, fell 7% on Wednesday to hover around $10, well below its all-time high of $259.99 reached in November 2021.

The latest drop comes as more crypto projects bail out the Solana ecosystem. On Monday, CoinDesk announced that two of the main NFT collections on the Solana blockchain, DeGods and Y00ts, will migrate to Ethereum and Polygon respectively.

Solana’s decline follows years of support and investment from Bankman-Fried and its affiliates.

In 2021, Solana Labs raised $314.2 million and received substantial backing from Alameda Research. The company also had the token as its second largest investment.

Later, Bankman-Fried also started building a decentralized exchange called Serum using the Solana blockchain.

In November, the Solana Foundation team published a blog post explaining the financial ties between the token and the Bankman-Fried empire. FTX and Alameda had purchased over 50.5 million Solana tokens worth around $500 million which would remain “locked” until 2028.

But the Solana Foundation also had around $1 million in cash or assets on the FTX platform as of November 6, when the exchange had to suspend client withdrawals due to liquidity shortages.

It remains unclear what will happen to these holdings during FTX’s bankruptcy proceedings. Meanwhile, data from Solana Compass cited by Forbes showed that Alameda liquidators now hold more than half a billion dollars worth of crypto.

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