NFT Platform Metaplex Layoff Staff, Citing Solana Downturn
The FTX contagion has had devastating effects on the Solana ecosystem. With Metaplex employees joining the list of those directly affected by the FTX Fallout.
Metaplex is a decentralized protocol for the creation, commerce, and use of digital assets on the Solana blockchain. According to the official website, over 22 million NFTs worth over $3.6 billion are minted with the help of the Metaplex Studio
Layoffs are making headlines this year, and Metaplex studio is yet another company that has to take this extreme measure. Stephen Hess, the co-founder, and CEO of the Metaplex studio, announced on Twitter that they have decided to part ways with several of their team members.
The CEO says that their treasury wasn’t directly affected by the FTX collapse, but the indirect impact on the market is significant and requires them to take a more conservative approach moving forward.
Solana worst hit by the FTX Fallout
FTX and Alameda research owned 58 million Solana (SOL) tokens, representing nearly 11% of the total supply. As things unfolded one after the another about the now-bankrupt exchange FTX, the price of SOL had a vertical decline.
The token got rejected from the resistance at $38.21 on Nov. 5 and has been in a continuous downfall since then. After declining nearly 65%, SOL is trading between $11.82 to $15.
The impact on the Solana Ecosystem
Not just the price of the token SOL but the Total Value Locked (TVL) in the Solana ecosystem is also greatly affected. According to data from DefiLlama, TVL is down by nearly 70% since Nov. 6. The Solana ecosystem had a TVL of $1 billion, but due to the FTX fallout, it currently stands at nearly $300 million.
The Solana Foundation had over $1 million in FTX, held $3.24 million worth of FTX shares, and invested $3.43 million in the FTX token (FTT). Hence the FTX fallout is a huge blow to the entire Solana ecosystem.
However, Anatoly Yakovenko, the co-founder of Solana, tweeted that they have 30 months of runway left in their treasury at the current burn rate.
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