Bankman-Fried, who frequently praised Solana, is expected to enter a plea next week in response to charges that he duped investors and misappropriated billions of dollars from FTX clients.
FTX creator Sam Bankman-Fried had praised the cryptocurrency token Solana, but its price dropped 10.36% on Wednesday and is down 94.2% for the year.
The Solana network, which allows smart contracts and non-fungible tokens and has emerged as a competitor to the Ethereum blockchain, is powered by the Solana token, or SOL.
Bankman-Fried, who frequently praised Solana, is expected to enter a plea next week in response to charges that he duped investors and misappropriated billions of dollars from FTX clients. Solana tokens were included on the balance sheets of FTX and Alameda, Bankman-trading Fried’s business.
Despite having little exposure to the defunct exchange and no direct connection to FTX, Solana’s affiliation with Bankman-Fried has proven detrimental.
“The primary problem with cryptocurrencies is that because they don’t have any intrinsic value, their values are based on perceived utility and trust. Steve Sosnick, chief strategist at Interactive Brokers, asserts that if they lose money because of a certain token, the token also loses money.
Solana’s spokesman was not immediately accessible for comment.
SOL has decreased by 51.14% since the FTX commotion started on November 2. Ether has decreased by around 21.3% and bitcoin by 17.6% within the same time frame.
According to coinmarketcap.com, the price of Serum, or SRM, the token for the decentralized exchange with the same name built by Bankman-Fried on the Solana blockchain, has decreased by 80.5% since November 2 and is currently trading at slightly over 14 cents.
According to the website, the market capitalization of all cryptocurrencies is currently $798.4 billion, down from a peak of almost $3 trillion in November 2021.
