Solana drops ~10% to around $10, as bitcoin and ether saw modest declines, over concerns that large holders could offload the token; SOL is down 94% in 2022
Solana, the cryptocurrency backed by fallen crypto mogul Sam Bankman-Fried, tumbled on Wednesday amid concerns that large holders may be about to offload the token.
BloombergSidhartha Shukla
Context & Ripple Effects
Solana's slide to ~$10 is the third leg of a collapse that began when the token crashed past $14 alongside bitcoin and ether in November after FTX's failure exposed how much of SOL's value rested on its most famous backer. Bloomberg's related reporting shows FTX and Alameda bought more than 58 million SOL tokens, so the market is now pricing in what happens when those coins move.
The tumble lands just as co-founders Anatoly Yakovenko and Raj Gokal are publicly working to separate Solana from Sam Bankman-Fried's stain — a repair job that every double-digit down day makes harder.
First-order effects
Large SOL holders — including whatever remains of the FTX and Alameda positions of 58M+ tokens — sit on assets whose sale would itself crater the price, trapping them between realized losses and illiquidity.
Yakovenko and Gokal's decoupling campaign takes direct damage: at $10, SOL is down 94% for 2022, and the token's price keeps contradicting the founders' message that the chain stands apart from Bankman-Fried.
Second-order effects
Developers and projects building on Solana face a shrinking treasury-and-token-incentive playbook, since grants priced in SOL buy far less than they did even a month ago.
Other tokens with concentrated insider or exchange-failure exposure get re-rated by the same logic, as traders apply Solana's 'who holds this coin' discount across the altcoin market.
Third-order effects
If the pattern holds, crypto markets structurally reprice tokens by sponsor concentration rather than sector beta — a chain's fate decoupling from bitcoin's modest declines and tracking instead the solvency of its patrons.
The trend: Crypto is shifting from broad-market correlation to sponsor-specific pricing, where a token's value tracks the health and holdings of its backers rather than bitcoin's cycle.
Crypto extinction under way... from bad to ugly and fugly... Solana Tumbles Again, Bringing Crypto Token's 2022 Plunge to 94% https://www.bloomberg.com/...
I finally received my Nov investor statement from Multicoin Capital. Over the past 11 months the hedge fund is down a whopping 90%, and they're still holding a bag of toxic shit. Time to close the fund down guys? Oh, and congrats on barely outperforming your benchmark $SOL 🙄 http…
for people longing or adding SOL through the bear and planning to hold for 2+ years, what is your thesis and thoughts on unique value proposition? no “i'm contrarian because people don't like it” and/or “just hoping only for reflexive rebound because oversold” responses please
1) @SBF_FTX released on bail 2) Alameda wallets become active again 3) Tokens like $SOL, $MATIC, $APT begin dumping hard Doesn't feel like a coincidence does it?
NFTs are not really fun when the price of the native token keeps going down. Why are you celebrating the floor going up when you bought the nft when sol was at $50 now it's $9?
Single-digit Solana is still one digit too many. Doesn't mean it can't dead cat bounce here, but I'm not planning on longing any soon. https://twitter.com/...
Sol chart looking like the billionaires are calling for redeeming their money from the fund. And they're not taking it in kind this time. https://twitter.com/... https://twitter.com/...
$SOL now at single digits. Those of you in the old school who believe this is a bubble simply have not understood the new mathematics of the Blockchain, or you did not cared enough to try. Bubbles are mathematically impossible in this new paradigm. So are corrections and all else
Solana nuking 21% after Sam got access to his laptop got me feeling a little Alex-Jonesy [I wasn't wrong about Solana making a comeback, SBF simply scammed me] https://twitter.com/...
$sol and $lunc are not coming back. You can literally use another chain if your thing is muh cheap fees, muh speed. Next bull run they will be good trades NOT good things to dca, btfd or w.e narrative your being spilled by crypto twitter. Gamble if you must tho.