Following FTX’s Chapter 11 bankruptcy filing, cryptocurrencies issued by cryptocurrency exchange FTX or its sister business partner Alameda Research have now experienced a significant price drop.

According to Coingecko data, Sollet’s encapsulated bitcoin has fallen by more than 60% in the past 24 hours, significantly underperforming the original bitcoin.

In contrast, the price of Ethereum encapsulated on Sollet also fell but by only 8% over the same 24-hour time frame.

It should be noted that for both encapsulated digital tokens, soETH and soBTC, Coingecko displays a cautionary notice on its website that:

soBTC digital tokens encapsulated in bitcoin tokens issued by FTX or Alameda.

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These two entities have filed for Chapter 11 bankruptcy, and as such, the original cryptocurrency is no longer redeemable.

Wrapped digital currencies, such as Bitcoin or Ethereum, on Solana make these assets available for use on the Solana Blockchain so that users can hold or trade them instead of the actual Bitcoin or Ethereum.

The founder of Roktiapp, an open source portfolio tracking application, commented on these encapsulated assets:

Since most of the cryptocurrency assets on Solana were saved by the now-collapsed cryptocurrency exchange FTX and Alameda means the cryptocurrency tokens are no longer redeemable and will likely go to 0.

The worst case scenario for soBTC has come to pass – nothing backs it up, hackers have access to FTX accounts and no one takes any responsibility.

We at Arab Bitcoin continue to tell the news about the collapse of FTX and its effects, which seem to be getting worse day by day.

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