Solana and meme coins bleed after whistleblower alleges hidden FTX wallets hold 8% of SOL supply
- Solana erased nearly 25% of its value in the past week, dropped to $140 low on August 4.
- A whistleblower alleged that bankrupt FTX exchange holds 8% of Solana supply in secret wallets, per news that surfaced on X.
- Solana-based meme coins suffer nearly 8% drop in market capitalization in the last 24 hours.
- Solana meme coins BOME, POPCAT, MEW, MUMU, SCF and GIGA observed double-digit decline in the last 24 hours.
Solana (SOL) and meme coins based on the Ethereum-alternative chain have suffered a steep correction in the past week. SOL wiped out nearly 25% of its value in the past seven days and dipped to a low of $140.
A whistleblower allegation has emerged on X, with several crypto analysts and influencers sharing the details of the statement made about FTX’s Solana holdings.
Anyone heard anything about this? Seeing some strange behavior in $SOL flows last day or so.
— Baker (@Baker0x) August 1, 2024
Hoping this isn't real or my portfolio will be decimated. pic.twitter.com/p6yhCx4XDm
The allegations of secret Solana wallets of FTX that control 8% of the supply has resulted in uncertainty among traders. The sentiment among traders is of “extreme fear” or 21% on the CFGI.io Fear and Greed Index.
Solana and Solana-related meme coins suffer correction
Solana has suffered nearly 25% decline in its price in the past week. SOL trades at $142.20 at the time of writing, the Ethereum competitor is likely to extend its losses based on on-chain activity.
Solana’s social dominance is down to 3.48% from its peak above 12% in March 2024.
 [14.41.22, 04 Aug, 2024]-638583609068913314.png)
Social dominance vs. Solana price
The volume traded on the Solana chain is nearly a fifth of mid-March 2024. Shrinking volume and declining social dominance are two on-chain metrics that support a bearish thesis for the asset.
 [15.01.42, 04 Aug, 2024]-638583609498670757.png)
Solana volume vs. Solana price
Solana-related meme coins have noted a nearly 8% decline in their market capitalization, down to $6.588 billion on Sunday, at the time of writing.
Book of Meme (BOME), POPCAT (Popcat), Cat in a dogs world (MEW), Mumu the ball (MUMU), Smoking Chicken Fish (SCF) and Gigachad (GIGA) suffered a double-digit correction in their price on August 4, Sunday.
FTX whistleblower alleges bankrupt exchange has secret wallet, controls 8% supply
An image that surfaced on X and was shared by several crypto influencers and traders shows that a whistleblower has alleged that bankrupt crypto exchange FTX controls 8% of Solana supply through hidden wallets.
The whistleblower’s claim has no supporting evidence and the allegations have resulted in uncertainty and a negative sentiment among SOL traders and holders.
Unless the sentiment among traders improves or on-chain activity increases, it remains unclear whether Solana and Solana-based meme coins will recover from their recent decline.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
