Jupiter Founder Speaks About Solana’s Issue after the fall of FTX

• Founder of Jupiter exchange took to Twitter to address the Solana issue.
• Meow states know one knew which platform issued tokens like soBTC.
• Binance CEO states that the fall of FTX has made crypto exchanges to become more transparent.

The founder of Jupiter took to Twitter to address an unspoken issue facing the Solana ecosystem at present after the fall of FTX. Meow (Twitter username) stated that one of the most challenging issues facing the Solana ecosystem is the wrapped Sollet tokens.

Meow also revealed in the twitter post that some of these tokens, including soBTC, are widely used across AMM and lending platforms. Moreover, Meow stated that no one knew whether these tokens are issued by FTX or Almeda research. He further stated that they were launched earlier in order to generate liquidity in the space. These tokens are also supposed to be backed by 1:1 BTC or ETH.

However, Meow stated that it is unclear whether FTX still has any of these underlying assets in its possession. He clearly identifies why this is a major problem as soBTC assets are collateral on major DeFi platforms. Meow asserts that if it comes to light that soBTC has no value, it could further worsen the situation.

Additionally Meow stated:

It is one thing for prices to fall and have liquidations be called, which is normal functioning of DeFi markets. It is another thing to have the underlying assets be completely invalid, which is really not supposed to happen.

Meow urged Solana and the Solana Foundation to reach out to FTX for more clarity on the situation. He stated that assets must be marked down if they are no longer backed. Meow stressed that it is better for it to happen now than later.

According to Binance CEO, The fall of FTX has definitely pushed several crypto exchanges to come out with complete transparency. Several exchanges are also using proof-of-reserve audits to ensure complete transparency.