Will FTX meltdown dilution of Sol?

Alameda Research, FTX’s sister company, holds almost $900 million in locked SOL. Uncoincidentally, nearly that amount of SOL is about to be unlocked for the first time as Alameda tries to free up some funds. Investors fear a dilution of SOL on the market. The FTX meltdown is catching investors by huge surprise.

Is FTX insolvent?

Bankman-Fried, who serves as FTX's CEO, took to Twitter early Monday to say the exchange was far from insolvent and there is no risk of withdrawals being halted. Binance CEO Changpeng Zhao has previously said that he plans to liquidate any remaining FTT on Binance's books, but on-chain data suggests that this hasn't yet begun.

What's going on with FTT & serum (SRM)?

FTT is currently trading down 19% at $17.93. SOL is lower by 17% and Serum's SRM token is down 10%. The action is spilling over into bitcoin ( BTC) as well, which is down 5.6% to $19,650. UPDATE (Nov. 8, 04:15 UTC): Updated with additional context and information.

Where is FTX based?

FTX is based in the Bahamas, where Bankman-Fried resides. Like many crypto companies, FTX created its own token called FTT, which could be purchased like bitcoin though it wasn’t as widely available. Owners of FTT were promised lower trading costs and the ability to earn interest and rewards like waived blockchain fees.