A Solana (SOL) whale is struggling to stay afloat amid the current crypto market downstream that pulled SOL down 34% in one day.
Colin Wu of Wu Blockchain tells his 237,100 Twitter followers that a Solana whale is in liquidation and currently has 2,450,418.5 SOL in collateral and 44,871,609 USD Coin (USDC) in debt.
With SOL trading at $15.02 at time of writing, that haul is worth more than $36.8 million. The 14th-ranked crypto asset by market cap is down nearly 36% in the past 24 hours.
Wu also reports that Solana is currently dealing with congestion “due to the update of the oracle.”
Crypto assets plummeted across the board this week after Tuesday’s stunning collapse of embattled exchange FTX’s native FTX Token (FTT).
FTX is battling what it’s described as a “liquidity crunch” after facing a flood of speculation that the exchange is relying far too heavily on holdings denominated in FTT.
On Monday, Binance CEO Changpeng Zhao said his company had signed a non-binding agreement to acquire FTX, pending a full review of the company’s balance sheet. Binance, however, pulled out of the deal on Wednesday, saying FTX’s issues are “beyond our control or ability to help.”
On Wednesday, the Singapore-based exchange Crypto.com announced that it had suspended deposits and withdrawals of USDC and top stablecoin Tether (USDT) on the Solana blockchain.
Says Crypto.com CEO Kris Marszalek,
“USDT/USDC on other chains operate normally of course. FTX was an important bridge/venue for SOL-based stablecoins, we do not want any additional risk to our users coming from this area, hence disabling it.”
In related news, Anatoly Yakovenko, the co-founder of Solana Labs, says his company didn’t have any assets on FTX.
“Solana Labs, a US corp, didn’t have any assets on ftx.com, so we still have tons of runway, and luckily still a small team.
Runway is in $, ~30 months at current burn. Learned our lessons in 2018.”
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