Sam Bankman-Fried Found Guilty of Fraud and Conspiracy
After a 15-day trial, Sam Bankman-Fried, the founder of FTX and Alameda Research, has been convicted on seven counts of fraud and conspiracy. Coincidentally, crypto wallet addresses associated with these companies have been dumping millions of dollars worth of cryptocurrencies over the past 10 days.
FTX and Alameda Wallets Dumping Solana (SOL)
The addresses linked to FTX and Alameda have deposited a total of 2.69 million SOL ($99.2 million) into cryptocurrency exchanges since October 24. This has particularly affected Solana (SOL).
According to Spot On Chain, the most recent three deposits made by FTX totaled 800,000 SOL ($32.7 million), which were sent to Binance and Kraken on November 2. FTX made these deposits at an average price of $40.9 per token.
Potential Impact on SOL Price
It is important to note that despite the recent deposits, FTX and Alameda still hold 4.26 million SOL ($164 million), with 3.96 million tokens ($152 million) currently staked. Although temporarily illiquid on Solana’s protocol, these staked tokens could be redeemed at any time, posing a potential sell-off threat that may impact the price of SOL in the short term.
Overall, it is estimated that FTX and Alameda Research have liquidated over $200 million in crypto assets within the past 10 days.
SOL Price Analysis
Solana’s spot and derivatives volume have experienced significant growth in recent days during a bull rally for the layer-1 web3 blockchain. Interestingly, SOL has consistently performed well in the crypto market across different time frames.
Currently, SOL is trading at $38.89 with daily losses exceeding 12%. The market anticipates further liquidations from FTX and Alameda following Sam Bankman-Fried’s guilty plea.
Despite the sell-offs, Solana has seen a 19% increase in the last seven days and a 66% increase in the last 30 days. The project’s continuous development and positive ecosystem news generate demand for its native token, SOL.
Hot Take: Solana Faces Short-Term Volatility Amidst Sam Bankman-Fried’s Conviction
With the founder of FTX and Alameda Research found guilty of fraud and conspiracy, Solana (SOL) faces potential short-term volatility. The recent deposits and potential sell-off threats from FTX and Alameda could impact SOL’s price. However, despite these challenges, Solana has shown strength with consistent performance in the crypto market. Its spot and derivatives volume have surged during a bullish period for the layer-1 web3 blockchain. Additionally, SOL has experienced significant price gains in the past 30 days. The project’s continuous development and positive ecosystem news contribute to the demand for SOL, which may help mitigate any negative effects of the recent events.
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