This Monday, Solana Foundation issued a report about its investments.
In the paper, the company responsible for the Solana blockchain announced that it holds “tens of millions of dollars” in cryptocurrencies attached to FTX. Also, the foundation owns 3.25-million common stock shares in the exchange.
Overall, the Solana Foundation held about $134 million in SRM tokens (Serum, a token created by FTX), as well as $3.24 million in FTT, and $3.43 million in shares of FTX Trading LTD common stock.
Needless to say, those endeavors turned out to become a huge loss for Solana. Today, the total combined investment adds up to $33.7 million. But the day before FTX’s first scandal, the total investment was worth $190-million – meaning a 77% loss.
Many Solana trading programs employed wrapped assets known as “Sollet assets” as alternatives for bitcoin, ether, and other non-native cryptocurrencies.
FTX was thought to be the issuer and backer of these assets – its demise has put them into a tailspin and caused serious liquidation issues for Sollet Assets.
A good part of Solana’s decentralized finance was based on FTX’s Serum token. And FTX’s (then) CEO, Sam Bankman-Fried was an avid supporter of the Solana blockchain. For this reason, the exchange’s collapse was particularly worse for the blockchain.
SOL became the biggest loser among the top 10 cryptocurrencies since the market crash hit. In less than a week, SOL token fell in value by 57%, going from $37.00 to around $13.00 in that time.
“Negligible Impact” On Solana Foundation
Despite the heavy losses, the foundation claims that it was able to withstand the turmoil without losing a significant amount of assets.
When withdrawals froze, Solana Foundation had less than $1 million on its balance sheet on FTX. The official blog post claims that the cryptocurrency company did not suffer meaningful losses during that time.
“Solana Foundation had ~$1M in cash or cash equivalents on FTX.com as of 11/6/22 when FTX.com ceased to process withdrawals. This is less than 1% of Solana Foundation’s cash or cash equivalents and as such, the impact on Solana Foundation operations is negligible.”
Adding to that, the organization also claims that they did not lose any SOL during the events.