Is Solana dead? - 2023 update
Direct from the desk of Dane Williams.
Following the 2022 crypto crash caused by FTX, we take a look at whether Solana is dead in 2023, or if it can somehow be pulled from the fire.
There’s no sugar coating things here… Solana is in serious trouble.
Due to Solana’s relationship with FTX, the crypto exchange’s collapse has meant the SOL token is dropping.
In this update, I take a look at why Solana is dropping, the Solana/FTX relationship and wrap up by making a call on whether Solana is dead in 2023.
Let’s dive right in.
Why is Solana dropping?
Solana is dropping due to FTX’s relationship as an early VC investor.
FTX had a TON of SOL tokens that they got for next to nothing and as a result, FTX and Alameda had no problems offloading all of their free dogshit at whatever price they could get.
First to try and stay afloat.
Then to try and satisfy their creditor overlords in bankruptcy court.
While both FTX and Alameda haven’t publicly commented on what this means for the future of Solana, the market has already made up its mind.
Solana’s SOL token has dumped well over 50% since news of FTX’s shaky position broke.
Compare that to BTC and even HIVE.
Yeah, not good numbers and likely not the end of the pain for those retail traders left holding a bag of dogshit… oh, I mean SOL.
The Solana/FTX relationship
But the Solana /FTX relationship goes deeper than just FTX being an early VC investor in SOL.
The Solana Foundation - read centralised company running their database - also invested in FTX,
Not only that, but they even held tens of millions of dollars worth of cash and tokens on the FTX exchange itself.
The Solana Foundation outlined on their blog that:
- The Foundation held 134.54 million SRM tokens
- 3.43 million FTT tokens on FTX
Those assets, at least at the time when shit started to hit the fan, were worth $29.3 million and $4.4 million respectively.
Yeah, not anymore.
But the Solana/FTX relationship didn’t stop there.
Together, they held court over an on-chain crypto exchange that Bankman-Fried created called Serum.
While not really DeFi (this is Solana after all), it was what they called Solana’s on chain decentralised finance arm.
Is Solana dead in 2023?
So now we come to the big question of whether Solana is dead in 2023 (or at least going to die).
First of all I must say that if things on that centralised hunk of shit weren’t already bad before, they certainly are now.
Just take a look at the updated SOL weekly chart below:
The bulls are certainly running out of support zones before price hits the death zone at zero!
If you’ve been following my LeoFinance blog, you’d know I’m a harsh critic of Solana and the centralised cancer that they are.
For me, the end goal of crypto always was and always is permissionless money.
Long term they were always dead.
But it looks like the events of 2022 might have just sped up the process.
Best of probabilities to you.
Posted Using LeoFinance Beta