Thomas Grimm

FTX praised Solana and she collapsed. As cryptocurrencies have no value of their own, loss of trust can be lethal

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In the fall of 2021 we echoed a great phenomenon in the cryptocurrency market: Solana surpassed Dogecoin and its enormous growth came hand in hand with a key ally, which was NFTs. The coin had skyrocketed its value by more than 200% in a month and that is that non-fungible tokens or NFT were in full swing.

Now, at the end of 2022, Solana is almost on the ground. Not only the series of scandals that have cornered the NFTs (huge losses in value, easy theft of these assets or scam purchases) has affected you.

Also in August there was news of a cyberattack on the Solana cryptocurrency, targeting thousands of cryptocurrency wallets, and that it does negatively affected its value.

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FTX and his new victim


In all of 2022, Solana has fallen by almost 95%, highlighting the sharp 10.36% plunge on Wednesday of this week. This cryptocurrency had been praised by the founder of FTXSam Bankman-Fried, both disgraced.

Bankman-Fried, who is expected to plead guilty next week to criminal charges for defrauding investors and looting billions of dollars in client funds at FTX, frequently praised Solana. FTX and Alameda, the trading company of Bankman-Fried, tthey had Solana tokens on their balances.

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Although Solana has no direct relationship with FTX, and had limited exposure to this platform, his association with Bankman-Fried has been a drag on this year terrible for the currency.

Steve Sosnick, chief strategist at Interactive Brokers, reminded Reuters that “the general problem with cryptocurrencies is that their lack of intrinsic value means that values ​​are based on trust and perceived utility.” Yes trust suffers, so does your courage. It must be remembered that even Binance has become a bank face with this event and after the collapse of FTX is defending that it is necessary to regulate cryptocurrencies

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