March 27, 2024
Solana CEO Concerned for Ecosystem Startups After FTX's Fall
Latest Cryptocurrency News

Solana CEO Concerned for Ecosystem Startups After FTX’s Fall

In 2022, the collapse of FTX had significant repercussions in the cryptocurrency space, particularly affecting the Solana ecosystem. Anatoly Yakovenko, the co-founder and CEO of Solana, expressed his concern for the startups within the Solana ecosystem that were exposed to FTX. Following FTX’s bankruptcy, Solana’s native token, SOL, experienced a sharp drop in value, impacting various projects.

Yakovenko revealed that approximately 20% of Solana-based projects had received investments from FTX or Alameda Research, and only 5% of ecosystem startups had funds on the defunct exchange. This resulted in a loss of runway for many of these projects, which was especially challenging for the founders who had trusted FTX with their funds.

One such example is Armani Ferrante, who lost a significant amount of funds held on FTX, but he and others persevered and rebuilt their companies after the setback. Yakovenko acknowledged that the token’s price drop was tough, but the real pain was the impact on these ecosystem projects.

The situation improved as FTX’s collapse anniversary approached, with Sam Bankman-Fried’s trial concluding, and investors began to support Solana more actively. Yakovenko mentioned the positive influence of Ethereum venture capital investor Chris Burniske in highlighting the value of Solana and encouraging new developments within the ecosystem.

Image by valuavitaly on Freepik

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