Solana’s price has fallen by more than 6% in the last day because people are worried that FTX, a crypto exchange that’s not doing well, might sell a lot of Solana and other Solana-related coins.
FTX used to have a lot of crypto coins on the Solana network, and now it has about $1.5 billion of them. However, only $128 million of that is in Solana tokens. The rest is in different coins like Wrapped Bitcoin (WBTC), Maps token (MAPS), Serum (SRM), and some jokingly called “Sam coins” named after FTX’s former CEO Sam Bankman-Fried.
People are concerned that FTX might suddenly sell $128 million worth of Solana and hundreds of millions of other Solana-related coins, which could cause the prices to drop a lot. Some people are talking about it on social media, saying things like “FTX is going to sell a lot of SOL” and “Solana’s price is going to fall to $14 soon.”
But there are rules that limit how much FTX can sell. They can only sell a maximum of $100 million worth of their coins each week, and they might be able to sell more of one type of coin at a time. These rules are in place to prevent big price drops and to make sure FTX pays back the people they owe money to.
These rules are not final yet because they need approval from the courts. They will be discussed in court on September 13th.
In the past, FTX said they found about $7.3 billion in assets, with $4.8 billion of it found by November 2022. But as of April 12th, they had about $4.3 billion in crypto coins available to give back to people.
Right now, Solana’s price is $18.38, which is almost 11% less than it was a week ago.
Remember that cryptocurrency prices change quickly, and this article is not financial advice. It’s always a good idea to do your research and talk to financial experts before making investment decisions.