Because of FTX Crash…Solana Loses $1 Billion USDT to Ethereum
The content site is one of the sites that provide the service of answering general questions and solving puzzles and crossword puzzles
Where the content site is primarily interested in answering your questions in all areas, including solving puzzles and crossword puzzles
Answer Because of FTX Crash…Solana Loses $1 Billion USDT to Ethereum
A few hours ago it was announced that USDT tokens worth $1 billion were transferred from the Solana blockchain to the Ethereum blockchain by stablecoin issuer Tether.
During this process, Tether indicated that there would be no change in the total supply of digital tokens.
Switching from Solana to Ethereum:
The announcement comes as Solana, which was among the top 5 cryptocurrencies by market capitalization just a few weeks ago, is facing troubles due to the failure of the FTX cryptocurrency exchange.
The transfer of cryptocurrency from one blockchain to another is referred to as a “network swap.”
Tether has performed this process several times in the past.
For example, in mid-2020, Tether exchanged $1 billion USDT from the Tron network to Ethereum twice.
Negative effect of FTX on Solana:
The collapse of FTX and Alameda Research was particularly brutal on the Solana blockchain and its SOL cryptocurrency.
FTX founder and CEO Fred Bankman was introducing Solana as an alternative to the Ethereum blockchain.
So the collapse of FTX had a negative impact on Solana.
The Solana Foundation, a non-profit organization supporting the development of the Solana blockchain, has acknowledged that $1 million in cash or other equivalent assets has been accounted for in FTX.
While earlier, Solana’s co-founder vehemently denied significant exposure to FTX or that bankruptcy would have any catastrophic impact on Solana.
Read:Nike Files a Patent for Marking Shoes on the Ethereum Blockchain
FTX funded Alameda Research, its trading subsidiary, with billions of dollars worth of client assets to fund risky trades, paving the way for its sudden collapse.
Besides, Alameda has acquired some Solana-related projects.
With only $1 billion in liquid assets, FTX failed to bridge the gap and was eventually forced into bankruptcy.
Solana coin lost more than 17% during the week and is currently ranked 15th by market capitalization.
The price recorded at the time of writing this article is $12.83, which is 95% lower than the all-time high of $256.
Read also:
Trust Wallet combines Binance Pay and Coinbase Pay
The President of El Salvador announces the purchase of 1 Bitcoin per day!
And you can ask questions on the content site through the word “Ask a question” at the top of the site, where we answer your questions in a short time