FUTURE OF SOLANA │ AFTER FTX CRASH
Will Solana continue to devaltuate? In this video, Kevin Machi discusses the consequences of the Solana blockchain in the wake of the devistating FTX market crash.
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From bbc:
The digital assets market has been rocked by the near-collapse of one of the world's biggest cryptocurrency exchanges, FTX.
On Tuesday, FTX struck a bailout deal with larger rival Binance after a surge in withdrawals caused a "significant liquidity crunch".
Concerns about FTX's financial health reportedly triggered $6bn (£5.2bn) of withdrawals in just three days.
Binance says it agreed to buy FTX's non-US unit, pending due diligence.
FTX's founder Sam Bankman-Fried and Binance's chief executive Changpeng "CZ" Zhao are two of the most powerful people in the cryptocurrency market and high-profile rivals.
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The pressure on FTX came in part from Mr Zhao, who tweeted on Sunday that Binance would sell its holdings of FTX's digital token, known as FTT.
"Due to recent revelations that have come to light, we have decided to liquidate any remaining FTT on our books," he said. FTT has lost almost 80% of its value this week.
On Tuesday Mr Zhao tweeted, "This afternoon, FTX asked for our help. There is a significant liquidity crunch."
Binance said it had signed a letter of intent to buy the firm but had "the discretion to pull out from the deal at any time".
Also on Twitter Mr Bankman-Fried said: "Our teams are working on clearing out the withdraw backlog as is. This will clear out liquidity; all assets will be covered 1:1."
"The important thing is that customers are protected... We are in the best of hands," he added.
Mr Bankman-Fried also noted that FTX's US business was a separate company and "not currently impacted by this".
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Analysis box by Joe Tidy, Cyber reporter
The cryptocurrency world is full of big personalities and Sam Bankman-Fried is one of the biggest.
Since the "cryptocrash" in the spring, the young, outspoken, owner of FTX has been a beacon of hope to investors large and small.
While other companies have faltered, Bankman-Fried seemed to be thriving.
In the last six months, the 30-year-old had given out generous rescue packages for struggling firms, secured lucrative acquisitions and taken part in high-profile media interviews.
As revelations about his company's fragile finances came to light in reporting by CoinDesk, those outspoken interviews are now coming back to bite him.
From Decrypt:
Nearly every major cryptocurrency is in the red this week after crypto exchange FTX revealed its liquidity crunch—and it’s getting worse now that Binance has opted not to rescue the firm. And outside of FTX’s own FTT token, no top crypto is taking it harder right now than Solana.
Solana (SOL) has fallen 60% over the last seven days to a current price of under $13 per token, according to data from CoinGecko, including a 45% plunge over the past 24 hours.
Since news of FTX's liquidity issues broke on Tuesday morning, Solana has lost over half of its value—about 57%. Now key founders of the blockchain network are attempting to salvage fading enthusiasm around the space as the ecosystem suddenly finds itself embroiled in crisis.
Binance CEO Changpeng Zhao.
Binance Backs Out of Deal to Buy FTX: 'Beyond Our Ability to Help'
One day after crypto exchange Binance announced its intent to acquire competitor FTX for an undisclosed amount, the company pulled out of the deal. “Our hope was to be able to support FTX’s c...
Time Stamps:
0:00 - Intro
00:34 - Contagion Effect
01:32 - Thoughts on Solana
02:17 - Hot Takes
03:20 - The only NFT's That Matter
4:27 - Honest Truth
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