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The price of Solana fell 10.36% Wednesday and is currently down 94.2% in 2022.
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The industry has been affected by the collapse of FTX, which has hampered liquidity for firms that were once exposed to one of the largest crypto exchanges in the world.
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Solana, also known as SOL, is the token behind Solana, a new blockchain that supports smart contracts and non-fungible tokens.
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It has been compared to the Ethereum one.
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Bankman-Fried is expected to plead guilty next week to criminal charges of defrauding investors.
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Bankman-Fried often praised Solana. Alameda, Bankman-Fried’s trading company, had Solana tokens on their balance sheets.
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Although Solana is not directly related to FTX and was only exposed to the failing exchange in a limited way,
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Bankman-Fried's association with Solana has been a hindrance.
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"The problem with crypto is its lack of intrinsic value. Values are based on trust and perceived utility.
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Interactive Brokers chief strategist Steve Sosnick said that if those are affected by a particular token, the token suffers."