As FTX Token Plunges, it also drags Down SOL and Some Other Tokens
In the recent trading sessions, the users have witnessed a significant drop in the trading price of Solana (SOL). The investors have witnessed that the price of SOL has continued moving in the downward direction.
According to the statistics, SOL has experienced one of the worst daily performances in the past few months.
SOL’s Price Dip
On November 9, the market saw the price of SOL take a huge plunge. The trading price of SOL ended up experiencing an over 40% dip.
This literally dragged the trading price of SOL down to around $16. SOL’s price plunged as it was associated with Sam Bankman-Fried.
He is known for being the founder of the financially troubled FTX exchange and Alameda Research. As both firms have taken huge damage, any token that is linked with Sam has taken a hit.
SOL is Sam Token
The reason behind SOL’s demise following the FTX exchange’s crash is because of Sam Bankman-Fried. Fried was among the early investors who backed the Solana blockchain.
He had supported the particular project through Alameda Research, which is the trading platform founded by Sam Bankman-Fried.
On November 8, as the FTX exchange balance sheet was leaked, almost the entire wealth of Sam Bankman-Fried ended up plunging.
Prior to the incident, Fried’s overall net worth was $15.6 billion which has plunged to $1 billion. This information has been confirmed by the Bloomberg Billionaires Index.
Binance Dealt a Huge Blow
As the incident took place, Binance, a co-exchange as well as the rival of the FTX exchange took action that ensured the crash of the FTX Token.
Binance was among the top investors of FTX Token (FTT) as it had invested a great amount of money into the particular asset. As the FTX debacle happened, Binance announced selling off its entire stake in FTT.
According to the reports, Binance sold its $2 billion worth of stake in FTT. This caused the price of FTT to plunge tremendously.
The price chart for FTT shows that it has taken more than 85% fall on November 9. After the plunge, the trading price of the FTT has fallen to a low of $3.60.
SOL’s 55% Plunge
The FTX Token was not the only digital asset that took a major fall. The trading price of SOL also took a major hit as it reportedly plunged more than 55%.
Solana’s price plunged right after Binance announced that it was going to sell off its entire holding of the FTT.
Another digital asset that took a major hit due to the incident was Serum (SRM). It is an asset that exists as an issuance from a decentralized exchange and runs through the Solana blockchain.
The trading price of SRM also took a 55% dive just as the price of the FTT token crashed. Another token dubbed “REN” faced a 33% plunge, which is a token launched by Ren.