Solana Can Breathe a Sigh of Relief
The FTX collapse has hit Solana hard.
The FTX collapse has hit Solana hard. After the issuance of several million SOL tokens was postponed, the price has risen again.
The collapse of the FTX crypto exchange leaves a mess in the crypto market. Of all the cryptocurrencies that fell to the depths during the market crash, Solana has been hit particularly hard. Over the course of the week, the SOL price fell from over 30 to 12 US dollars. With a daily gain of 25 percent, Solana is gradually clawing back the price dip after the issuance of millions of SOL tokens was postponed.
Solana delays staking distribution
Two developments have sparked a sense of crisis in the Solana community. In the wake of the FTX revelations, it has become clear that Alameda Research holds substantial quantities of SOL tokens. The insolvency of FTX's hedge fund led to panic selling among investors—the Solana price fell.
This was worsened by a timing issue: all the events around FTX would unlock tens of millions of SOL tokens. The payout of tokens worth half a billion US dollars could have driven the price lower still.
As the Solana Foundation View post on X, the date is now postponed: "While in this period (370) 28.5 million SOL would be unlocked, the plan is now postponed and all 28.5 million SOL are now unlocked again."
Validators removed from the server
The server shutdown is tied to hosting provider Hetzner, which last week blocked all network activity of all Solana validators. The German cloud provider, which runs a big chunk of the Solana network, has disconnected more than 1,000 validators from the server. The affected nodes are now back online.
"On 2.11 Hetzner removed many of Solana's independent validators due to a policy change," the Solana Foundation said. "As a result, the Solana Foundation has started pulling back the 28.5 million SOL that had been transferred to these validators under the Solana Foundation's delegation program." It has not been disclosed when the coins will be released.
