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 still haunts solana (SOL-USD).
In traditional markets, stocks and commodities are rising as China signals further reopening after demonstrations in major cities against COVID-lockdown measures, while bitcoin appears determined to make the most of the current surge in investor optimism after last week’s close above $17,000 .
Bitcoin is up 7% in the past seven days to $17,307 and ethereum (ETH-USD) is up 11% in the past week to $1,295.
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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 network of choice after Ethereum for launching non-fungible tokens (NFT).
However, Solana’s proximity to the FTX collapse in early November has been damaging to its reputation.
FTX and its associated investment arm Alameda Research were influential in Solana’s growth, and it is estimated that the two entities together control over 50 million Sol tokens.
Uncertainty about the future of such a large catch of sol tokens has caused the cryptocurrency to fall out of the cryptocurrency market capitalization top 10 to number 17.
Solana uses a combination of proof of stake (PoS) consensus, a new type of proof of history (PoH) clock synchronization 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, CEO of Blackrock (BLK), has confirmed his position in blockchain technology.
Speaking at the New York Times Dealbook Summit last week, the head of the world’s largest asset management firm said blockchain technology is relevant to the future, saying it “will be very important”.
He said: “I think the next generation for markets and the next generation for securities will be the tokenization of securities.”
Read more: Crypto and Climate Change: Can Blockchain Technology Stop Global Warming?
Tokenization of securities is when a real value is converted into a digital asset and distributed on a blockchain-based platform.
This process allows 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 $24 million in Sam Bankman-Fried’s FTX through a billionaire fund it manages, the CEO explained.
Regarding the FTX meltdown, Fink said, “We’ll have to wait and see how this all plays out, I mean, right now we can take all the verdicts, and it looks like it was misconduct with big consequences.”
