Is There A Possible Recovery For Solana After The FTX Collapse?

So we are back to this FTX collapse again and trust me it’s going to take a very long time to die off. Besides this has affected crypto in the worst way possible and it’s going to affect it more as some things are yet to be unfolded. Now let’s talk about Solana, if you noticed, Solana really dipped and it’s still dipping since the FTX collapse but for how long? Now look at this, Sam BankMan-Fried was endorsing Solana, I think he had some kind of great love for Solana. Don’t get me wrong, Solana is a great project and has nice utilities, just that the blockchain outage was making it look more crappy than the good utilities it had to offer.

source Back to Solana, FTX, Sam BankMan-Fried and Alameda, it’s not a secret that while sam BankMan-Fried was publicly endorsing Solana in the past, his companies were buying it. It’s not a secret, and it wasn’t weird, as a matter of fact, turns out they bought about 11% of the supply of Solana. Great number right? A huge number to be held by some certain people, this means that they are going to obviously affect the price of the token. They bought over 50 Million quantities of Solana, the price of Solana went to an all time high of about $200, you can imagine how rich they would have been then. I think Sam BankMan Fried over leveraged too much but unfortunately the bear season dealt with him or he is just a big lie and good actor, because he played his role so well.

11% of the Solana supply right? Now this 11% was obviously staked and locked for some time to yield interest. Solana gives about 6% APR, so imagine over 50 Million of that APR, then imagine the price during the bull run. But unfortunately FTX has collapsed and rumor has it that FTX & Alameda was selling their solana holding to obviously revive FTT after CZ, The CEO of Binance made that alarming tweet that got everyone panick and dumped the token. But that didn’t work, we also saw a great number of Solana get unstaked, this was also supposed to be linked to FTX & Alameda as they are rumored to have unstaked their Solana for dumping.

This unstaking thing will happen once every month, meaning that once every month, a particular quantity of Solana will be released just like we have it on Hive when we power down, we get 1/13 of Hive weekly for 13 weeks. It’s expected that when the unstaking happens for Solana, it will be dumped, and that will affect the price. Obviously when FTX & Alameda do that, they will be dumping their 11% supply on the market.

That is not just where this ends, remember we heard that about 1 Million creditors are being owed by FTX, this includes lots of projects that had invested in FTX and companies that have their equities in FTX, but after the collapse and the inaccessibility of the FTX platform what happens to their funds and investment, we are about to start seeing a lot of companies go bankrupt as they won’t be any funds or equities for operations. We have started seeing that as genesis decided to halt withdrawal yesterday. This is just the ones we know, there are a lot we don’t know.

Sam BankMan-Fried did a great job in convincing the world and public that everything was under control and going smoothly, so a lot of people trusted him and left their money in the exchange, but it turns out to be a big lie and now, Solana is part of the projects and coin facing the repercussion. Well, it’s just a matter of time though, it will bounce back in the future, it’s not the end of Solana as it’s utilities and use cases precedes this, we have seen some projects like the Ethereum encounter such and bounced back real good.

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