FTX CEO Sam Bankman-Fried was once a significant investor in Solana, making the token a frequent mention in his century-defining court sessions. FTX collaborated with Alameda, purchasing 58 million SOL tokens, with over 50 million tokens unlocking monthly from September 2021 until 2027. The remaining approximately 7.5 million SOL would fully unlock in 2025. Notably, 10% of the total SOL supply is part of FTX and Alameda’s investment—a substantial figure.
As a result, Solana seems unable to completely escape the influence of its former ardent supporter, Sam Bankman-Fried, especially as the token consistently surfaces in the FTX CEO’s court hearings. Recently, a rumor on Twitter, attributed to former Alameda Research CEO Caroline Ellison, suggested that the former FTX executive could “turn on and off” the Solana blockchain at will. While this tweet was essentially a hoax, it raised a legitimate concern about Solana’s decentralized nature.
Amidst these discussions, Jacob Creech, a Solana representative, shared, “We are currently offering a $400,000 reward for anyone who can find the code to turn off Solana. This reward has been hanging for 2 years, but no one has claimed it.”
Clearly, this reward is considered valuable as it reassures the Solana community that the system is secure and not under the control of anyone, including FTX and Bankman-Fried. Solana and the SOL token were once highly favored by Bankman-Fried, publicly endorsed on social media.
The FTX events have negatively impacted the Solana ecosystem, primarily through indirect effects and the result of FUD (Fear, Uncertainty, Doubt) influencing the crowd. If the ecosystem can continue to grow and attract users in the long term, it still has a chance to reach or even surpass its previous golden age.
In Bankman-Fried’s ongoing legal proceedings in Manhattan, Solana has been mentioned multiple times, contributing to a 6% decrease in SOL’s value in the previous week, according to CoinGecko data.