FTX Meltdown: Implications and Insights

In a throwback to the early days of crypto, FTX, the third largest crypto exchange, halted user withdrawals during a bank run. There is reportedly a shortfall of $8 billion. Sam Bankman-Fried, the founder of the exchange, was the poster boy for the crypto industry’s efforts to find legitimacy. In a twist of irony, his blow up and alleged mismanagement may set the industry back again in the eyes of regulators. FTX and Alameda Research were prominent supporters of Solana and its ecosystem. SOL is now down 50% over the past two days as supporters try to rebuild amid the uncertainty.

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