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SOL price surge: Will CZ’s recovery fund save Binance Smart Chain competitor, FTX fave Solana?

By Alara Jordan

16:05, 15 November 2022

Solana digital cryptocurrency coin, showing teal and purple logo on a white background, on someone's smartphone in silhouette
Solana's decentralised finance (DeFi) has seen more than £500m in value wiped out since FTX’s fallout – Photo: Shutterstock

The price of solana (SOL) has dropped by more than 40% in the last seven days as a result of the FTX and Alameda Research fallout, with both firms major backers in the Solana blockchain.

The price of SOL hit highs of around £33.23 on 5 November, before tumbling down to lows of £11.11 on 9 November following the announcement of Binance’s withdrawal of FTT tokens. The announcement from Binance – which at one point included a potential buyout of FTX – sent the entire market spiralling into chaos, with several of the largest cryptocurrencies also taking a hit on price.

Last year, Solana closed a private token sale of $314m with a16z (Andreessen Horowitz) leading the round and participation from Alameda Research. 

Solana’s decentralised finance (DeFi) has seen more than £500m in value wiped out since FTX’s fallout. 

SOL to USD

ETH/USD

3,195.25 Price
+0.850% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

BCH/USD

370.50 Price
-2.010% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

DOGE/USD

0.11 Price
+0.860% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

XRP/USD

0.53 Price
-2.350% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

Binance CEO pledges industry fund

Binance CEO Changpeng “CZ” Zhao took to Twitter to announce that he will form an industry recovery group to help projects in a liquidity crisis after the fallout of FTX.

The fund is set to help reduce “further cascading negative effects of FTX”, CZ said via a Tweet on Monday 14 November. While there is no specific indication as to what the fund would invest in, CZ said the fund would target projects that are “otherwise strong, but in a liquidity crisis”. The Binance CEO also encouraged other industry players to co-invest.

The announcement of the fund seems to have a positive impact on the cryptocurrency sector, with Bitcoin rallying to a high of £17,109 the same day, according to Coinmarketcap.

The downfall of FTX has pushed the wider cryptocurrency into an overall sell-off sentiment. Ethereum, the second-largest cryptocurrency by market capatalisation, plunged more than 20% in the last seven days. ETH is currently trading at £1,065.

Markets in this article

SOL/USD
Solana / USD
147.0197 USD
5.8498 +4.190%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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