After Solana and FTT, another altcoin from the same ecosystem threatens the market. Things don’t look right for commonly used wrapped tokens.
Solana ecosystem’s wrapped tokens could trigger another ‘bear move’
Many analysts on Twitter gave a warning for soBTC, which was widely used after the FTX-Binance crisis. Sollet tokens are widely used, particularly in lending and AMM services. The biggest problem here is that it is unknown whether the tokens were issued by FTX or Alameda. Recently, @weremeow on Twitter shared a detailed report on the impending danger as these tokens are backed by Bitcoin and Ethereum:
One of the biggest issues facing the Solana ecosystem; They are wrapped Sollet tokens abbreviated soBTC. These are widely used in loan and AMM platforms. These tokens were launched on the Solana DeFi ecosystem to help build liquidity into the market. It needs to be supported 1-1 by BTC or ETH.
1/ One of the most challenging and unspoken issue facing the @solana ecosystem are the wrapped Sollet tokens, namely soBTC, which is used widely across lending and AMM platforms.
The problem? These tokens are issued by FTX (or Alameda, no one really knows)
— meow (@weremeow) November 9, 2022
Wrapped tokens are cryptocurrencies used on DeFi platforms and linked to stocks, bonds, gold or the like. Additionally, they are backed by BTC or ETH for a stable price structure. Wrapped SOL was developed by the Solana team to encourage greater use of the network. @weremeow says SoBTC from these tokens could make the situation worse:
If SoBTC turns out to be worthless, it could worsen the crash even more.
The crashed FTX was holding a lot of these tokens
According to reports, these tokens are produced by FTX and are based on the funds of its exchange’s investors. According to Solscan, the current market value of SOBTC is around $264 million with a supply of 16,149.99. There are currently 8,361 owners in total. This puts these investors in danger as prices collapsed after the FTX crash. SOBTC is currently trading at $16,526.31, while Bitcoin (BTC) is trading at $17,378.53. Normally both should be fixed at a ratio of 1:1.
Although this issue has not been addressed now, investors are worried that soBTC could drop to zero. The support of SOBTC by FTX further strengthens this possibility. Koindeks.com As you follow, FTX is currently holding withdrawals on hold. The Turkish leg of the stock market reported that they will return with TRY to solve the problem.
FTX TR ekibi kullanıcıların FTX TR bakiyelerinin korunması için gerekli tedbirleri aldı. FTX TR olarak FTX TR’de bakiyesi bulunan tüm kullanıcıların bakiyelerinin Türk Lirası karşılığını ileteceğiz.
Kademeli olarak çekim limitlerini düzenli olarak arttıracağız.
— FTX TR (@FTX_TR) November 10, 2022
The crypto community has been hit by the over 50% collapse of Solana and FTX Token, ahead of the flurry around Sollet. Solana, which has been in the middle of the top 10 at market price since 2021, dropped to $12.51 after FTX’s liquidity crisis. FTT, on the other hand, is trading at $2.90.
