Solana (SOL) Price At Risk With Binance FTX Token Sale; Here’s Why
Solana (SOL) News Updates After FTX Token Sale Announcement: After gaining an encouraging push with the Google partnership news, Solana (SOL) price appears back at square one now. With nearly 13% price drop in last 24 hours, the cryptocurrency has all but lost its gains from the Google Cloud news. Meanwhile, a section of the crypto ecosystem is attributing the drop to Binance’s announcement of its plans to liquidate FTX’s FTT token.
Earlier, Binance said it will liquidate its remaining holdings of FTX (FTT) token. The exchange already took an equity exit from Sam Bankman-Fried led exchange last year. Reportedly, $584 Million worth of FTT token were transferred to Binance exchange. This led to an instant drop in FTT price. As of writing, FTT token price stands at $22.37, down 8.50% in the last 24 hours, according to price tracking platform CoinMarketCap.
Solana (SOL) Price Drop Due To FTX News Of Token Sale?
A similar price drop is also seen with Solana (SOL), which saw a steady price drop. As of writing, SOL price stands at $31.60, down 11.78% in the last 24 hours. Last week, Google Cloud said it was running a Solana validator to participate in and validate the network. This news led to an instant SOL price rise, raising hopes of a bullish run among the investors. In this context, some seasoned crypto players smell FTX CEO Sam Bankman-Fried’s investment in Solana.
Duo Nine, a crypto analyst, suggested that Sam Bankman-Fried’s FTX has around $1.20 billion invested in SOL. In fact, he said the crypto billionaire was an early investor in Solana. He said in a tweet:
“FTX CEO investments:
$292 million of unlocked SOL
$863 million of locked SOL
$41 million of SOL collateralSam was an early investor in Solana.”
More Risk In Store For Solana (SOL) Investors?
In his announcement about FTX Token (FTT) plans, Binance CEO CZ said the holdings will be liquidated gradually to avoid market impact. This means there is chance of further risk to SOL in the coming months, if the correlation comes to be true and continues further.
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