© Reuters. This is How A lot Sam Bankman-Fried’s Solana Would Be Value If FTX Did not Collapse
Benzinga – Throughout the 2021 bull market, Solana noticed unimaginable worth positive factors. Going from $2 to an all-time excessive of $260 made many traders rich. When wanting again at this run and trying to pinpoint a number of the causes, Sam Bankman-Fried’s (SBF) identify pops up.
SBF was an advocate for Solana, creating initiatives, investing within the token and talking about it publicly. Many consider that SBF’s reward and use of Solana was a serious contributor to its large spike in 2021.
Particularly, SBF created a decentralized change (DEX) on the Solana blockchain referred to as Serum. This challenge allowed customers to commerce and convert Solana and different tokens on a peer-to-peer change. SBF’s success with centralized change FTX additionally contributed to Serum’s success.
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Nevertheless, SBF and FTX Buying and selling Ltd. ultimately got here tumbling down. In early November 2022, FTX turned bancrupt. As the small print turned public, it was found that SBF was utilizing buyer funds for his proprietary buying and selling agency Alameda Analysis.
This occasion was shattering for the crypto neighborhood, however Solana was hit notably onerous. As a result of SBF backed the challenge, many have been hesitant to proceed investing, and the value of SOL fell drastically. Inside two months of FTX’s insolvency, SOL had depreciated by 50%. By the tip of 2022, the token was price lower than $10. Whereas different tokens additionally misplaced worth throughout this time, SOL’s fall from grace was a lot bigger than its friends.
Solana had a robust restoration in 2023. Regardless of starting the yr at a two-year low, the value reached a brand new 52-week excessive of over $125. This restoration was largely due to a handful of latest initiatives and airdrops on the platform. Most notable are the memecoin Bonk (BONK) and the staking platform Jito (JITO). These initiatives attracted new traders and spurred new curiosity in SOL.
SOL’s restoration makes many marvel about SBF’s giant place. On the peak, FTX and SBF held greater than 60 million tokens, which was greater than 10% of the entire provide. Whereas the quantity of tokens has fallen barely due to FTX’s promoting to repay collectors, it nonetheless holds over 55 million tokens.
It’s also necessary to notice that FTX has a vesting schedule for the SOL tokens — it may possibly promote round 1% of its tokens each month. Nevertheless, in March 2025, FTX can be allowed to promote over 7.5 million tokens.
FTX’s Solana place at present is price over $5.5 billion. That is derived from a place of 55.8 million tokens priced at $100.
At its peak of 60 million tokens valued at $125 per token, the holding would have been price $7.5 billion. At its lowest, this place would have been price a mere $600 million in early 2023.
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