Crypto News

The Solana Foundation lost over $180 million in crypto to FTX

the Solana Foundation has published a fact sheet detailing its exposure to FTX following its bankruptcy

The organization held over $180 million worth of crypto assets with the company on Nov. 6, just before the exchange stopped processing withdrawals.

FTT and SRM-stocks

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

However, the company lost far more in crypto assets. Although no Solana (SOL) was held on FTX, around 3.43 million FTX (FTT) tokens and 134.54 million Serum (SRM) tokens owned by the foundation are trapped on the exchange as of the beginning of this month.

The exchange also held 3.24 million FTX common shares.

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

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

Since FTX collapsed, FTT has fallen to just $1.32 while SRM is trading at $0.32 as of Thursday.

Even SOL has suffered big losses, falling below $15 this month and well outside the top tencryptocurrencies after market capitalization. Last November reached SOL all-time high from $259 each.

Despite those losses, Solana stated that his network experienced “no significant performance or uptime issues” after the fallout. That has the Blockchain known suffered several failures in the past.

Packaged brands on Solana

should Bitcoin — a tokenized version of Bitcoin on Solana — lost its price peg to the primary cryptocurrency after FTX went bankrupt. Although FTX has been responsible for holding the bitcoin that backs these tokens, accounting revelations as of Nov. 10 suggest the exchange has held up Zero Bitcoin on its active side.

The Solana Foundation claims to have held an additional $40 million in Sollet-based assets like soBTC as of this date. “The status of the underlying assets is currently unknown,” she added.

The non-profit association noted this USDC and USDT on Solana are issued directly from Circle and Tether respectively and remain fully secured at this time.

Source: Crypto News Deutsch

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