Price Drops on Bitcoin’s Representative on Solana Network

The existence of a Solana-based cryptocurrency that works based on the Bitcoin price has suffered a great decline with the latest developments. The reason for this drop is that FTX US, the only platform where these assets can be exchanged for a real Bitcoin, has stopped withdrawing cryptocurrencies.

According to DeFi protocol Raydium, Sollet Bitcoin (soBTC), a “wrapped” asset supposedly backed 1-to-1 by Bitcoin, has dropped as low as $6,000. Coin had spent most of the day trading below the Bitcoin stable following news that FTX had filed for bankruptcy protection.

The Solana (SOL) altcoin, which had a large amount on the balance sheet of the bankrupt cryptocurrency exchange FTX, lost a significant part of its value with bad news about the company. The locked total value (TVL) on the Solana chain had dropped 32.4% in the past 24 hours as news of the collapse of FTX swept through the crypto ecosystem.

Cryptocurrencies affiliated with Alameda Research and SBF’s companies were the hardest hit, with Sam Bankman-Fried (SBF), founder of FTX and crypto hedge fund Alameda Research, an early investor in Solana.

Anatoly Yakovenko, co-founder of Solana Labs, reiterated his optimistic stance on the network despite the recent challenges facing SOL and despite recent losses. A number of announcements were made at Solana’s annual conference, including a partnership with Google Cloud, the launch of the Solana App Store, and an upcoming smartphone.