SOL price surge: Will CZ’s recovery fund save Binance Smart Chain competitor, FTX fave Solana?
By Alara Jordan
16:05, 15 November 2022
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
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.
To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify. 1/2
— CZ ???? Binance (@cz_binance) November 14, 2022
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.
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