SOLANA IN BIG TROUBLE

---

_source

---

Solana has struggled all year because of the chaos caused by the bear market. The demise of FTX might be the final nail in FTX's figurative coffin. Over the past few years, Alameda research and FTX have invested over a billion dollars in the Solana blockchain. They might use the Solana network to observe their unclean laundry. Sam Bankman-dependence Fried's on the Solana founder raises concerns about Solana's future. Sam and Anatoly had an extremely close relationship that dates back to the early 2021 founding round of $340 million for the Solana foundation, which Sam backed.

Sam was planning to invest an additional $100 million into the Solana web3 game just one week before they collapsed. Solana later surpassed Alameda and FTX as the second-largest company. Currently, Solana speaks publicly about the FTX bankruptcy to inform people of its condition. Before they started withdrawing funds, Solana Foundation had $1 million on the FTX exchange platform, which does not represent more than 1% of Solana Foundation. 58 million of the premine tokens issued by the Solana foundation were sold to Alameda for an unspecified sum. As a result, Alameda became the ecosystem's main benefactor.

The quantity of staked Solana token that was ready to be freed before FTX collapsed was one of the most intriguing things announced. 250 wallets and 29 million dollars were able to leave at the appropriate time. You should be aware of what has already occurred; the price of SOL fell by more than 70% in just four days. Additionally, Solana's decentralized value increased to its highest level in recent months. Or, to put it another way, everyone was hurrying to remove their asset. Over the past few weeks, Solana's stock price has been falling, and a lot of money has been lost. Less than $300 million in liquidity is still available on the blockchain, bringing the total value locked in Solana to an all-time low.

Solana's value is currently 83 times lower on the blockchain, and there is almost little possibility that it will ever recover. Even more of a warning indicator than the entire value frozen is the widespread existence of developers in Solana. Even if Solana survives this terrible situation, there won't be anyone left to create anything on the blockchain. We have no idea what might happen to them. The number of active developers, who existed even before the crisis, was likewise cut in half. Perhaps some of the people involved in the Solana project were aware of a problem. This week, Tether made the announcement that they would withdraw $1 billion USDT from Solana. Tether selling their stake on the Solana blockchain demonstrates a possible draw down.

Due to all of the current difficulties, the Solana NFT has been severely impacted. The Solana blockchain may be destined to fail and fall into the list of platforms that were once superior. The validator was urged to upgrade the node in a tweet by the Solana foundation's founder. The problem that has plagued the Solana blockchain all year will be resolved with the upgrade of its nodes.

_REFERENCE