Solana Token Loses Value Due to FTX Collapse in 2022

The price of Solana, a cryptocurrency token, fell 10.36% on Wednesday and is down 94.2% in 2022

– The collapse of FTX, once one of the world's largest crypto exchanges, has impacted liquidity at firms with exposure to the exchange

[{"selector":"#anim-de2c1105-2df8-4162-8d4d-b7bdba8bca59","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9bc474e7-5222-47fe-bdc0-788948bfb0e6 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(15.004178764117311%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

[{"selector":"#anim-aa0edb87-e0ea-4a12-afa6-4465e3e6d866","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b8a8bf00-981f-4971-a987-bd8a2f8e5c47 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] – Solana, or SOL, is the token behind the Solana blockchain, which supports smart contracts and has emerged as a rival to the Ethereum blockchain

[{"selector":"#anim-3ef70d4d-0316-41ce-902c-83d8a2062c88","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-03ada075-0056-40b7-ac15-98f670cec2e8 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] – Sam Bankman-Fried, the founder of FTX, frequently praised Solana and both FTX and Alameda, Bankman-Fried's trading firm, held Solana tokens on their balance sheets

[{"selector":"#anim-02a5def6-91ff-4949-91bf-6a153b6e2bfd","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-684614a4-fad2-48c5-be2f-fbcf96a2c5aa [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] – While Solana has no direct relation to FTX, its association with Bankman-Fried has impacted its value

[{"selector":"#anim-2a3ebfb1-9d82-444e-93f9-7a12d3cb9430","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e83e7360-502c-4256-b24c-f0250cfa0051 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-1.0658141036401503e-14%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The lack of intrinsic value in cryptocurrencies means their values are based on confidence and perceived utility, and if those suffer, the value of the token can suffer as well

[{"selector":"#anim-1fefc1d4-06d9-4806-8184-c11d70dd7bbb","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8aa18c55-8746-4398-9b36-fac9d520766f [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(4.984145876194052%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] – SOL has dropped 51.14% since the controversy around FTX began on November 2nd

[{"selector":"#anim-3209467e-0788-4187-9a88-ffe1dc485ac1","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-201aa76b-3017-45fd-817f-c3a69a306280 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] – In the same period, ether has fallen 21.3% and bitcoin 17.6%

[{"selector":"#anim-b23905ae-6f6f-4d2a-974b-66d216457eba","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-cd561c1c-8793-4e40-8a5e-9163653af945 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(12.68992895196148%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] – The price of Serum, or SRM, a token for the decentralized exchange created by Bankman-Fried on the Solana blockchain, is down 80.5% since November 2nd.