{"id":1414,"date":"2022-12-29T04:36:36","date_gmt":"2022-12-29T04:36:36","guid":{"rendered":"https:\/\/solanacrypto.news\/2022\/12\/29\/the-sam-bankman-fried-backed-crypto-solana-has-lost-nearly-all-its-value-this-year-and-is-still-crashing-as-key-projects-bail\/"},"modified":"2022-12-29T04:36:36","modified_gmt":"2022-12-29T04:36:36","slug":"the-sam-bankman-fried-backed-crypto-solana-has-lost-nearly-all-its-value-this-year-and-is-still-crashing-as-key-projects-bail","status":"publish","type":"post","link":"https:\/\/solanacrypto.news\/2022\/12\/29\/the-sam-bankman-fried-backed-crypto-solana-has-lost-nearly-all-its-value-this-year-and-is-still-crashing-as-key-projects-bail\/","title":{"rendered":"The Sam Bankman-Fried-backed crypto Solana has lost nearly all its value this year and is still crashing as key projects bail"},"content":{"rendered":"<div>\n<figure class=\"caas-figure\">\n<div class=\"caas-figure-with-pb\" style=\"max-height: 479px\">\n<div>\n<div class=\"caas-img-container\" style=\"padding-bottom:50%;\"><img decoding=\"async\" class=\"caas-img has-preview\" alt=\"Sam Bankman-Fried, founder of FTX and Alameda Research\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/9LaYVms37FRCrazJDPbxig--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTQ3OQ--\/https:\/\/media.zenfs.com\/en\/business_insider_articles_888\/e1f8a86f96fdb153485c3736856dbd86\"\/><\/div>\n<\/div>\n<\/div>\n<p><figcaption class=\"caption-collapse\">Sam Bankman-Fried, founder of FTX and Alameda Research<span class=\"copyright\">FTX<\/span><\/figcaption><\/p>\n<\/figure>\n<ul class=\"caas-list caas-list-bullet\">\n<li>\n<p>Solana, once praised as a viable rival for Ethereum, has tumbled almost 70% since the collapse of Sam Bankman-Fried&#8217;s empire, and is down 94% in 2022.<\/p>\n<\/li>\n<li>\n<p>The token was heavily backed by Bankman-Fried, and his companies held large positions on their books.<\/p>\n<\/li>\n<li>\n<p>The disgraced crypto founder said over the summer that Solana was the most underrated cryptocurrency.<\/p>\n<\/li>\n<\/ul>\n<p>Sam Bankman-Fried touted Solana this summer as the most underrated cryptocurrency, but the token is now down 94% for the year after crashing 70% since the collapse of FTX in November.<\/p>\n<p>Solana, which was once praised as a viable rival to the second-most popular crypto Ethereum, dropped 7% Wednesday to hover around $10, far below its all-time high of $259.99 reached in November 2021.<\/p>\n<p>The latest decline comes as more crypto projects bail on the Solana ecosystem. On Monday, <a target=\"_blank\" href=\"https:\/\/www.coindesk.com\/web3\/2022\/12\/26\/solanas-top-nft-projects-degods-and-y00ts-to-migrate-chains\/\" rel=\"nofollow noopener\" data-ylk=\"slk:CoinDesk\" class=\"link \">CoinDesk<\/a> reported that two of the Solana blockchain&#8217;s top NFT collections, DeGods and Y00ts, will migrate to Ethereum and Polygon, respectively.<\/p>\n<p>Solana&#8217;s decline follows years of support and investment from Bankman-Fried and his subsidiaries.<\/p>\n<p>In 2021, Solana Labs raised $314.2 million, and received substantial backing from Alameda Research. The firm also had the token as its second largest investment.<\/p>\n<p>Later, Bankman-Fried also began building a decentralized exchange called Serum using the Solana blockchain.<\/p>\n<p>In November, the Solana Foundation team released a blog post explaining the financial ties between the token and Bankman-Fried&#8217;s empire. FTX and Alameda had purchased over 50.5 million Solana tokens \u2014 now worth about $500 million \u2014 that would remain &#8220;locked&#8221; until 2028.<\/p>\n<p>But Solana Foundation also had roughly $1 million in cash or assets on the FTX platform as of November 6, when the exchange had to pause customer withdrawals due to liquidity shortages.<\/p>\n<p>It remains unclear what will happen to these holdings during FTX&#8217;s bankruptcy proceedings. Meanwhile, Solana Compass data cited by <a target=\"_blank\" href=\"https:\/\/www.forbes.com\/sites\/qai\/2022\/12\/17\/solana-cryptocurrency-outlook-post-ftx-bankruptcy\/?sh=334c4fff5fd8\" rel=\"nofollow noopener\" data-ylk=\"slk:Forbes\" class=\"link \">Forbes<\/a> showed that Alameda&#8217;s liquidators now hold over half a billion dollars worth of the crypto.<\/p>\n<p>Read the original article on <a target=\"_blank\" href=\"https:\/\/www.businessinsider.com\/sam-bankman-fried-ftx-collapse-crypto-solana-alameda-markets-investing-2022-12\" rel=\"nofollow noopener\" data-ylk=\"slk:Business Insider\" class=\"link \">Business Insider<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Sam Bankman-Fried, founder of FTX and Alameda ResearchFTX Solana, once praised as a viable rival for Ethereum, has tumbled almost 70% since the collapse of Sam Bankman-Fried&#8217;s empire, and is down 94% in 2022. The token was heavily backed by Bankman-Fried, and his companies held large positions on their books. The disgraced crypto founder said [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1415,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1414","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/posts\/1414","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/comments?post=1414"}],"version-history":[{"count":0,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/posts\/1414\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/media\/1415"}],"wp:attachment":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/media?parent=1414"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/categories?post=1414"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/tags?post=1414"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}