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Solana Foundation lost over $180 million in crypto on FTX

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The Solana Foundation is issuing a fact sheet detailing the risks it poses to FTX following bankruptcy

The organization had pledged more than $180 million in crypto assets to the company on Nov. 6, just before the exchange stopped processing withdrawals.

FTT and SRM Holdings

Solana had about $1 million in cash on FTX as of Nov. 6, according to the Foundation’s report (last updated Monday). The nonprofit said these funds were “insignificant” to its operations, accounting for less than 1% of its cash reserves.

However, the company suffered much larger losses in crypto assets. While no Solanas (SOL) were held on FTX, approximately 3.43 million FTX (FTT) tokens and 134.54 million Serum (SRM) tokens from the Foundation have been stranded on the exchange since the beginning of this month.

The exchange also held 3.24 million shares of FTX common stock.

According to CoinGecko, FTT was trading for over $22 at the time, while SRM was worth about $0.8 each. According to the foundation’s figures, this equates to an exposure of $75.46 million and $107.6 million for FTT and SRM, respectively.

FTT is FTX’s utility token that gave holders low trading fees on the platform. Meanwhile, SRM is the governance token for Serum – a scalability-focused DEX protocol launched by a consortium that includes FTX, Alameda Research, and the Solana Foundation.

Since the collapse of FTX, FTT has only dropped to $1.32, while SRM is trading at $0.32 as of Thursday.

Even SOL has suffered big losses, falling below $15 this month, and has fallen out of the top ten cryptocurrencies by market capitalization. Last November, SOL hit its all-time high of $259 a piece.

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Despite these losses, Solana said her network “has not experienced any significant performance or uptime issues” in the wake of the decline. Blockchain has faced several outages in the past.

token wrapped on Solana

Solet Bitcoin — a tokenized version of bitcoin on Solana — lost its price peg for the primary cryptocurrency after FTX went bankrupt. While FTX was responsible for backing those tokens to bitcoin, the November 10 balance sheet disclosures indicated that the exchange had zero bitcoin on the asset side.

The Solana Foundation claims to have invested $40 million in exposure to Solana-based assets, such as soBTC, until that date. “The status of the underlying asset is unknown at this time,” it added.

The nonprofit noted that USDC and USDT on Solana are issued directly by Circle and Tether, respectively, and are fully supported at this time.

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source: cryptopotato.com

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