Crypto

The Solana Foundation Lost Over $180 Million in Crypto on FTX

The Solana Foundation has released a factsheet detailing the exposure it holds to FTX following its bankruptcy

The organization held over $180 million in exposure to the company’s crypto assets as of November 6, just before the exchange stopped processing withdrawals.

FTT and SRM Holdings

According to the foundation report (last updated Monday), Solana held approximately $1 million in cash on FTX as of November 6. The nonprofit said these funds were “negligible” to its operations, representing less than 1% of its cash reserves.

However, the organization lost significantly more in crypto assets. Although no Solana (SOL) was held on FTX, approximately 3.43 million FTX (FTT) tokens and 134.54 million Serum (SRM) tokens owned by the foundation are now trapped on the exchange.

In addition, the group owned 3.24 million common shares of FTX.

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

FTT is FTX’s utility token that offered holders reduced trading fees on the platform. Meanwhile, SRM is the governance token of Serum, a scalability-focused DEX protocol launched by a consortium including FTX, Alameda Research, and the Solana Foundation.

Since the collapse of FTX, FTT has fallen to just $1.32, while SRM is trading at $0.32 on Thursday.

Even SOL suffered significant losses, falling below $15 this month, and well outside the top ten cryptocurrencies by market capitalization. Last November, SOL reached its all-time high of $259 each.

Despite the losses, Solana said her network had “not experienced any notable performance or availability issues,” as a result of the fallout. Blockchain is known to have suffered several outages in the past.

Tokens wrapped on Solana

Sollet Bitcoin – a tokenized version of Bitcoin on Solana – lost its price against the main cryptocurrency after FTX went bankrupt. Although FTX was responsible for holding the Bitcoin backing these tokens, the November 10 balance sheet disclosures indicate that the exchange held zero bitcoin on its active side.

The Solana Foundation claims to have held an additional $40 million of exposure to Sollet-based assets, such as soBTC, as of this date. “The status of the underlying assets is unknown at this time,” he added.

The nonprofit organization noted that USDC and USDT on Solana are issued directly by Circle and Tether respectively, and remain fully indexed for now.

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