FTX Alameda’s liquidity crunch jeopardizes the SOLANA ecosystem

Solana's (SOL) ecosystem struggles as FTX and Alameda Research suffer from a liquidity crunch. The investors are dumping and unstaking the coin after the price drop.

There’s a lot of confusion and panic surrounding the SOL token as it dropped below $20. A coin that remained strong during the crypto winter has failed to recover from the mess FTT tokens caused.

The reason behind this massive crash is Alameda’s investment in SOL. Since Alameda is in crisis, the institute is selling its assets to recover its marginal cost.

Solana’s ecosystem is also among those investments and Alameda is likely to make a huge sell-off because of their losses. As a result, the SOL prices have been dumping ever since FTT went down.

No one had predicted that the FTX would be insolvent; there’s almost a $1B gap in their financial liabilities, which is most likely to push down the market.

Seeing the prices dropping, a lot of traders unstaked their SOL tokens, almost $18M. As the unstaking takes 8 hours to complete, the process was completed and the coin began to drop drastically.

Solana has been a very popular coin since Sam Bankman-Fried announced he would buy SOL when it was at $3, the market became bullish and the coin even hit $100.

But when Alameda and FTX lost their assets, the team was forced to sell out their SOL assets. Currently, SOL trades at $14 with a market cap of $5B according to CoinMarketCap.

Alameda Research is actively trying to recover from the loss, so the traders and investors are waiting to see how it responds to this crisis before they sell out even more.

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