Bitcoin price rises but FTX collapse still haunts solana

Bitcoin (BTC-USD) increased in value by almost 7% in the past week, but the fallout from the collapse of the FTX exchange is still haunting solana (SOL-USD).

In traditional markets, stocks and commodities are climbing as China signals further reopening after demonstrations in major cities against COVID lockdown measures, while bitcoin seems determined to make the most of the current rise in investor optimism after last week’s close of over $17,000.

Bitcoin was up 7% over the past seven days to $17,307 and ethereum (ETH-USD) rose 11% in the past week to $1,295.

Check: Crypto live prices

However, unlike others at the top of the cryptocurrency market, solana fell 0.4% in the past week to $14.06.

2022 has been a bad year for the Solana blockchain. It started the year in a strong position, being the preferred network after Ethereum for launching non-fungible tokens (NFTs).

However, Solana’s close proximity to the FTX collapse in early November has been detrimental to its reputation.

FTX and linked investment arm Alameda Research were influential in Solana’s growth and it has been estimated the two entities combined have control of over 50 million sol tokens.

Uncertainty over the future of such a large haul of sol tokens has seen the cryptocurrency drop out of the cryptocurrency market cap top 10 to number 17.

Solana uses a combination of proof of stake (PoS) consensus, a new type of proof of history (PoH) clock synchronisation technology, and a number of other innovations to achieve its goal of providing fast, secure, and scalable blockchain performance.

Blackrock’s Larry Fink suggests support for blockchain technology

Larry Fink, the CEO of Blackrock (BLK), has affirmed his position on blockchain technology.

Speaking at the New York Times Dealbook Summit last week, the head of the world’s largest asset management company said blockchain technology is relevant for the future, saying it “will be very important”.

He said: “I believe the next generation for markets and next generation for securities will be tokenisation of securities.”

 

Tokenisation of securities is when a real-world asset is converted into a digital asset and deployed onto a blockchain-based platform.

This process allows for fractional ownership of real-world assets, such as stocks, bonds, real estate and other assets, to be traded and exchanged as digital tokens.

Blackrock invested $24m in Sam Bankman-Fried’s FTX through a billionaire fund it manages, the CEO explained.

Regarding the FTX meltdown, Fink said: “We’re going to have to wait to see how this all plays out, I mean, right now we can make all the judgment calls and it looks like there were misbehaviours of major consequences.”