FTX Collapse Wipes Out $8B of SOL Market Cap, Price Dips by 62%

• Early this month, SOL ranked the 9th largest crypto with a market cap of over $13.5.
• It currently trades at $14.20 after losing over 50% of its value in the past weeks.
• Blockchain wallet CEO said SOL is the most unfortunate victim of the current crypto industry collapse.

Since the news of FTX’s impending collapse broke, Solana (SOL) had been in trouble. On November 5, SOL still ranked the 9th largest cryptocurrency, with a market cap of over $13.5 billion, while it traded above $37.5. However, the coin has dropped even below the rank of the Shiba Inu meme coin.

SOL currently trades at $14.20, having lost over 50% of its value in the past weeks due to the FTX issues, putting its market cap around $5 billion. Stefan Rust, CEO of blockchain wallet company Laguna Labs, said:

In the current crypto shakeout, the most unfortunate innocent victim is the Solana ecosystem.

Rust and several other crypto investors agreed that FTX and its subsidiary company Alameda Research likely sold a significant chunk of the SOL coin to stabilize their native token, FTT. However, the strategy failed as FTX’s token has lost over 100% of its value since last week. FTT dropped from one of the top 50 cryptocurrencies to number 209, trading below $2 from $21.

Previously, Solana raised about $300 million in a private Initial Coin Offering (ICO) from several private investment companies, including Alameda Research. In return for participating in the fundraising round, Alameda earned a stake in a segment of SOL.

According to a chart posted by a crypto enthusiast, the bankrupt FTX connects to more than 70 other Web3 businesses.

Following the collapse of FTX, the CEO of Binance, Changpeng Zhao (CZ), has advised crypto asset managers to be risk-averse and avoid trading with customers’ funds.