Solana’s Price Plummets Amid FTX-Binance Controversy

  • Solana’s price has dropped 14% in the last 24 hours.
  • At the time of writing, SOL is trading at $27.93.

The price of Solana has taken a direct hit amid the ongoing Binance-FTX spat.

Solana Drops 14% As Founders of FTX and Binance Continue To Engage In A Heated Spat

The price of Solana fell sharply on November 8, dropping 14% from its usual high due to the ongoing spat between the founders of FTX and Binance crypto exchanges.

FTT suddenly plunged 14% in 1 hour, and SOL fell 14% in 24 hours. 1.9 million FTT ($44 million) was transferred from the Genesis OTC Desk to FTX 12 hours ago, but CZ said it was not Binance selling.

The data from Coinglass reveals how aggregate open interest across SOL also fell over 13% in the last 24 hours. It is to be noted that nearly $3.37 billion worth of aggregate open interest across SOL also appears in Alameda’s balance sheet, which has been recently making the rounds on crypto Twitter.

The token’s appearance has been reflected in Alameda’s balance sheet, which has spurred a debate on FTX’s ability to cover its debt position. The balance sheet first acquired by Coindesk reveals a number of alarming indicators, including FTX holding the majority of its assets in FTT tokens.

The issue gained further momentum after Binance’s CEO, Changpeng Zhao, took to Twitter to announce his decision to liquidate the FTT tokens that Binance has been holding of late.

As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1/4

FTX founder Sam Bankman-Fried had later issued counter statements, assuring its users that FTX is financially stable; however, the news has already significantly impacted FTT’s price, which has now tanked 30% at press time and is trading at $18.29.

1) A competitor is trying to go after us with false rumors.

FTX is fine. Assets are fine.


Image: Unsplash/Dylan Calluy

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