London December 28 2022: Solana, the cryptocurrency backed by fallen crypto mogul Sam Bankman-Fried, tumbled on Wednesday amid concerns that large holders may be about to offload the token.
Solana dropped as much as 12% on Wednesday and was trading 8.8% lower as of 8:40 a.m. in London. Other tokens saw modest declines, with Ether slipping 1.3% and Bitcoin down 0.3%.
While other so-called altcoins have suffered steep declines this year, Solana has been pummeled by the bankruptcies of Bankman-Fried’s crypto exchange FTX and his hedge fund Alameda Research, which had backed the token. The coin has lost 94% of its value in 2022.
“General confidence in Solana’s future has taken a hit given its close connection with SBF,” said Martin Lee, data journalist at blockchain research firm Nansen, using Bankman-Fried’s initials.
DeGods and Y00ts, two of the top nonfungible token projects on the Solana blockchain, are leaving the ecosystem and migrating to the Polygon ecosystem, CoinDesk reported on Monday.