Solana

Optimism

The post <a rel="noopener noreferrer nofollow" href="https://coinpedia.org/news/one-year-later-ftxs-remarkable-transformation-from-scandal-to-solana-success/">One Year Later, FTX’s Remarkable Transformation from Scandal to Solana Success</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a>
In February 2022, FTX, a cryptocurrency exchange, was worth a staggering $32 billion. But within days, it went through a severe financial crisis, one of the most significant in years.
Fast forward to November 2, 2022, CoinDesk <a href="https://www.coindesk.com/business/2022/11/02/divisions-in-sam-bankman-frieds-crypto-empire-blur-on-his-trading-titan-alamedas-balance-sheet/?_gl=1*owhnt6*_up*MQ..*_ga*NDIzNDUxNDY2LjE2OTg5MDU0ODE.*_ga_VM3STRYVN8*MTY5ODkwNTQ4MC4xLjAuMTY5ODkwNTQ4MC42MC4wLjA." rel="noopener noreferrer nofollow">published a report</a> revealing that Sam Bankman-Fried’s trading firm, Alameda Research, was overflowing with FTT tokens issued by FTX.&nbsp;
It was a sign that the ties between Alameda and FTX ran deeper than initially thought, revealing a precarious financial situation. Making matters worse, there were allegations of improper use of FTX customers’ funds for personal gain.&nbsp;
Within nine days, both FTX and Alameda filed for bankruptcy. Sam Bankman-Fried was arrested, and now, he’s on trial for criminal fraud and conspiracy.
<h2 class="wp-block-heading" id="strong-ftx-s-holding-strong">FTX’s Holding</h2>
It’s still navigating the complexities of bankruptcy court. Surprisingly, reports indicate that creditors could recover an average of 37 cents on the dollar. This figure is surprisingly high, considering the dire circumstances the exchange faced a year ago.
What’s truly remarkable is the role of Solana (SOL) in this resurgence. FTX’s holdings consist of a substantial <a href="https://coinpedia.org/news/58-million-in-sol-stuck-after-attempted-unstaking-from-ftx-wallet/" rel="noopener noreferrer nofollow">58 million SOL tokens</a>, with the majority, approximately 42.2 million, being currently locked and unavailable for immediate trading on the market.
Notably, just last month, reports emerged about FTX’s holdings, presented in the form of an official debtor venture portfolio, valuing the SOL holdings at $1.16 billion. However, since that time, SOL has made an impressive leap from around $20 per token to its current value of about $42.
The overall crypto market has also experienced a significant boost, even though it has yet to reach its previous $3 trillion peak in 2021.
<h2 class="wp-block-heading" id="h-optimism-for-creditors">Optimism for Creditors</h2>
As FTX’s SOL holdings start to unlock next year, there’s growing optimism among creditors. With $10 billion in customer claims, experts suggest they could recover at least 80% of their investments.&nbsp;
If SOL’s price continues to rise, reaching $50 to $60, the outlook becomes even brighter, potentially leading to a 100% or more return for creditors.
While the majority of SOL tokens remain frozen until 2027 or 2028, the exchange’s resurgence highlights the unpredictable nature of the crypto world. Solana’s remarkable growth and the resilience of crypto markets continue to shape this evolving narrative.

One Year Later, FTX’s Remarkable Transformation from Scandal to Solana Success

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