Measuring the Effect of FTX's Fall on Solana's Ecosystem Tokens

FTX was the flagbearer of the crypto industry in the West, with Sam Bankman-Fried (SBF) at its helm. The crypto space often considered FTX as a company that is too big to fail. However, the first week of November left the whole crypto community stunned following FTX's filing for bankruptcy and multiple indictments charged against the founders, with claims that the exchange participated in the mass theft of customer funds and SBF executed market manipulation of the exchange token FTT. Caught in the crossfire was the Solana ecosystem, a favored blockchain of FTX/Alameda Research.

FTX and its founder SBF were one of the biggest advocates of Solana. The Block Research mapped out 255 public investments of FTX/Alameda Research, of which 62 were projects from the Solana ecosystem, its most favored ecosystem, more than the number of multichain and Ethereum-based projects. FTX/Alameda Research supported Solana in its infancy stages and launched Serum, a decentralized exchange (DEX) on Solana. Solana founders’ conversation with The Scoop covers more details about the infancy phase of the blockchain and FTX’s contribution during the same period.