As the effects of the demise of Fried’s FTX empire began to spread, the crypto cryptocurrency Solana, which was connected to a blockchain supported by Sam Bankman-Fried, fell more than 52% in just one week, taking the lead in the crypto crash.
According to data from CoinGecko, Solana’s market value has decreased from a height of about $80 billion last November to a little over $5 billion. Meanwhile, Ether has decreased by roughly 20%, and Bitcoin by about 19%.
How Was Solana Impacted By The FTX Disaster?
Since the FTX disaster “ate” up all the crypto-linked assets, the cryptocurrency market has shrunk to just $786 billion from $1.02 trillion. NFTs, with its headquarters in Solana, suffered a severe 68% price decline, which reduced its valuation from $424 million to $135 million in a couple of days.
The main factor driving Solana’s NFT pricing down is FTX’s support of the layer 1 Solana solution. SOL’s value fell to $ 12 while FTX dealt with its own showdown. While the FTT controversy damaged the entire ecosystem, including the king cryptocurrency “BTC,” the Solana DEX named Serum’s bankruptcy had a terrible impact (SRM).
Is Solana’s drop paving the way for Cardano?
Making progress in the NFT space are networks like Cardano and Solana, with the latter even announcing a $5 million fund this year to bring creators and their followers into its ecosystem.
Cardano is making strides even though it isn’t approaching NFTs with the same vigour as Solana.
More users joined the platform after smart contracts were added, which raised interest in NFTs on Cardano. But now that Cardano Improvement Proposal 25 has been released, the blockchain’s native coins have a specified NFT metadata standard.
Solana Vs. Cardano
The Solana network attempted to correct Ethereum’s flaws because it could process up to 50,000 transactions per second compared to Ethereum’s 20 transactions per second, its energy-efficient Proof-of-history was revolutionary. Solana is more scalable than Ethereum because of this transaction throughput.
Celebrities are switching from Cardano and Solana, especially now that Cardano has activated the capabilities of its blockchain smart contracts, allowing developers to create and deploy applications to the Cardano blockchain.
Additionally, from a user perspective, Solana is slightly more useful than Cardano because of its proof-of-history approach. Cardano is a project that is being built slowly and is scholarly in tone.
Cardano should benefit from Solana’s crash, but that is not the only factor that will make the altcoin the “Ethereum Killer.”
SBF has consistently demonstrated that he is a strong proponent of the altcoin. As a result, his enterprises had substantial investments in Solana.
Additionally, it was claimed that the trading company held $1.15 billion in Solana and that it sold its cryptocurrency holdings to stop the collapse of FTT, FTX’s token.
Crypto exchange Kraken to start layoffs as crypto winter persists
- Kraken plans to lay off nearly 30 percent of its overall headcount because of crypto winter
- The company is providing a number of support for those losing their jobs
The second largest crypto exchange in the United States – Kraken – announced it would start laying off its employees. The crypto platform is planning on reducing its overall headcount by 30%. This means that approximately 1,100 employees would lose their jobs.
Notably, the company has cited market conditions as the reason behind the move. The firm also stated that its first call of action was to slow down the hiring process. However, the firm had to opt for this action due to “negative influences on the financial markets.”
The reduction in the staff would put the company’s overall headcount the same as it was a year ago. The firm said,
“Since the start of this year, macroeconomic and geopolitical factors have weighed on financial markets. This resulted in significantly lower trading volumes and fewer client sign-ups.”
In addition, Kraken has listed a number of support that would be provided to those losing their jobs. This includes separation pay, healthcare, performance bonus, and outplacement support. The crypto exchange will also be giving immigration support to those working on a company-sponsored visa.
Jesse Powell, the CEO and co-founder of Kraken, said,
“I’m confident the steps we are taking today will ensure we can continue to deliver on our mission which the world needs now more than ever before. I remain extremely bullish on crypto and Kraken.”
Kraken is the latest to join the layoff trend, while Binance moves the opposite direction
Notably, Kraken is the latest crypto exchange to join the layoff trend in the crypto market. Many other exchanges including Coinbase have been actively laying off their employees since the beginning of this year. Just last month, Crypto.com, another prominent crypto exchange, reportedly laid off as much as 30%-40% of the overall workforce.
However, the only prominent crypto exchange that has not yet laid off any employees is Binance. The largest crypto exchange in the world is, in fact, hiring more employees actively. In June, when most of the companies were engaging in a firing saga, Binance announced it was going add 2000 more to its global team.
Moreover, Binance’s CEO – Changpeng Zhao – recently said that the team has doubled from what it was a year ago. CZ also said,
At the time of this tweet, @Binance had 5900 people. Today we have 7400+ people. Targeting 8000 or so by end of year. Hiring continues.
BlockFi Files For Chapter 11 Bankruptcy Protection
Another crypto company has recently fallen victim to the FTX contagion. As reported by Reuters, BlockFi, a cryptocurrency lender and financial services firm filed for bankruptcy protection on Monday. On November 11, the same day FTX filed for bankruptcy, BlockFi first stopped allowing withdrawals.
“We, like the rest of the world, found out about this situation through Twitter. We are shocked and dismayed by the news regarding FTX and Alameda,” BlockFi wrote in a letter at that time. A few weeks ago, the company had stated it had $256.9m in cash on hand, which should be enough to fund continued operations. Additionally, it stated that platform operations are currently suspended.
BlockFi stated on its website a few days after FTX filed for bankruptcy that it was unable to conduct normal business, acknowledged that it had “significant exposure” to FTX, and would evaluate efforts to recover “all obligations owed to BlockFi.”
“We do have significant exposure to FTX and associated corporate entities that encompasses obligations owed to us by Alameda, assets held at FTX.com, and undrawn amounts from our credit line with FTX.US. While we will continue to work on recovering all obligations owed to BlockFi, we expect that the recovery of the obligations owed to us by FTX will be delayed as FTX works through the bankruptcy process,” BlockFi said in the November update.
BlockFi will begin the restructuring process in order to protect its clients. “With the collapse of FTX, the BlockFi management team and board of directors immediately took action to protect clients and the Company,” said Mark Renzi of Berkeley Research Group, the Company’s financial advisor, as reported by Business Wire.
The company apologized to its clients and investors and said, “We look forward to transparency through our reorganization, and will work to keep clients and stakeholders informed as we make progress.”
However, they assured that they will continue to work on the obligations. But due to the ongoing FTX debacle, the company said that recoveries from FTX will be delayed.
At the time of the FTX collapse, BlockFi wrote in a letter, “We, like the rest of the world, found out about this situation through Twitter. We are shocked and dismayed by the news regarding FTX and Alameda.”
Stay Tuned For the complete story…
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
Bitboy Crypto Camps Outside SBF’s Penthouse in the Bahamas
Crypto Twitter influencers are swarming to the Bahamas in search of Sam Bankman-Fried, the former CEO of the troubled cryptocurrency exchange FTX. Ben Armstrong aka BitBoy Crypto, a popular crypto influencer, has gone to the Bahamas in an effort to have a conversation with Sam Bankman-Fried, the founder and former CEO of FTX.
BitBoy has been tweeting and sharing images of himself camped out in front of Bankman-house Fried’s in the Bahamas for the past few days. The influencer criticized Bankman-Fried after FTX, once the third-largest cryptocurrency exchange in the world, just went under, causing a crypto crash. In the wake of FTX’s bankruptcy, he also blasted the celebrities who pushed the company on social media.
More influencers are en route to see what details they could possibly discover. YouTuber Gabriel Haines raised $10,000 through a successful crowdsourcing campaign to send him and his family to the Bahamas after tweeting several viral rants about the disaster surrounding SBF and FTX.
Since September of last year, the now-bankrupt exchange has had its headquarters in the Bahamas, where it has operated out of a penthouse at the Albany Resort, a gated community on the island of New Providence. The area is currently the focus of impromptu investigations purportedly conducted on behalf of the crypto community.
Bitboy Shifts his Focus to Solana
BitBoy has moved his attention to the Solana project now. This came after he said that Alameda Research was in charge of the Solana blockchain halts and was using them to launder money.
“Every time the Solana blockchain paused… it was actually Alameda Research laundering money and brute forcing transactions. There are other out there receipts. And if you think about it… knowing what we know now, does this surprise, anyone? If you are in $SOL, run for hills,” he had tweeted.
Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing – accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
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