- Solana (SOL) sees a short-term dip, but FTX’s rumored Solana liquidation might be overblown.
- Solana ambassador, Gumshoe, reveals that potential FTX SOL sales will span over five years.
Market Stir: Solana’s Recent Price Performance
Amidst a market-wide downturn, Solana (SOL) experienced a decline of 4.74% within a 24-hour span, intensifying its weekly slump to 10.39%. These figures, however alarming, aren’t solely attributed to Solana, as the broader crypto arena also resonates with bearish undertones.
The community’s heightened anxiety stems from speculations about FTX’s prospective liquidation of its digital assets, with SOL allegedly being the most prominent on the chopping block. Influential crypto personality, Crypto Rover, fueled this unease, hinting at FTX’s possible liquidation of a staggering $685 million worth of SOL.
Crypto prices expected to drop! pic.twitter.com/Yl3EHVQC7H
— Collin Brown (@CollinBrownXRP) September 11, 2023
Adding to the speculative frenzy, another prominent figure in the trading community, ‘Bleeding Crypto’, even went so far as to forecast SOL plummeting to a range of $5 to $8, advising traders to liquidate their positions and potentially repurchase at these lower thresholds.
The FTX collapse and consequently biggest black swan Solana ever endured put SOL at $8
And we're worried about ~$600M that will be sold over the course of the next 5 years?
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Some Major L1s have higher inflation than this and no one cares.
— Gumshoe (@0xGumshoe) September 10, 2023
Debunking Liquidation Myths: An Ambassador’s Insight
However, a silver lining appears amidst the brewing storm of apprehensions. Gumshoe, representing Solana Mobile as an ambassador, sheds light on the situation with a nuanced perspective.
Drawing from history, Gumshoe accentuated the resilience of SOL. He reminded the crypto populace of a previous incident: the aftermath of FTX’s downfall. This event had temporarily dragged SOL’s price to a mere $8. Yet, in a display of robust recovery, the digital asset bounced back, trading significantly higher, above the $20 mark.
Furthermore, addressing the elephant in the room, Gumshoe clarified the perceived impending doom of FTX’s massive Solana liquidation. Instead of a hasty selloff, the expected dispersal of the $600 million worth of SOL is projected to be distributed over an extensive five-year period.
While Solana does experience its fair share of market fluctuations, Gumshoe further added that several other leading layer-one blockchains grapple with higher inflationary aspects. Yet, these factors don’t seem to perturb the community or the market sentiment.
For now, the market remains a watchful observer, gauging real developments over speculative whispers. But as reiterated by experts and ambassadors alike, understanding the broader picture is crucial before jumping on the bandwagon of market rumors.
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