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Top 5 Cryptocurrencies Affected Due To The FTX Downfall

By November 24, 20224 minute read

After the dramatic collapse of one of the largest Crypto exchanges in the world, the Crypto industry as a whole has been impacted severely. On a broader scale, most Cryptos are dragged down. According to experts, the whole industry is in a wait-and-watch mode. This FTX fiasco has shaken up the investor’s confidence severely. Anyway, this is not the first case that has occurred this year; we have also witnessed the fall of TerraUSD, which impacted major companies and heavily contributed to the fall of Three Arrows Capital.

Truth be told, the Crypto industry is highly volatile, and one major mishappening can lead to the downfall of almost all the Cryptos. In this blog, let’s learn about the major Cryptos that were heavily impacted due to the FTX collapse.

Major Cryptos Affected Due To FTX Downfall

#1 Solana (SOL)

Solana is a Layer-1 blockchain platform created in 2017 as an open-source project with the goal of hosting decentralized, scalable apps. The Solana foundation in Geneva looks after the blockchain, which the San Francisco-based Solana labs created.

Solana is a Proof-of-Stake (PoS) blockchain that combines PoS with the Proof-of-History (PoH) consensus algorithm. While PoH enables the timestamping and quick validation of the transactions, PoS allows validators to authenticate the transactions taking into account the number of tokens or coins they own and stake.

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How has FTX impacted Solana?

Some high-flying advocates, such as Sam Bankman-Fried, the creator of the FTX Crypto exchange, were driving the growth of SOL’s popularity. Today, SOL’s worth decreased by $300 million shortly after FTX filed for bankruptcy and began facing proceedings. SOL also lost tens of millions of dollars in the value of the Crypto it had left stranded in FTX’s Crypto assets.

#2 Arweave (AR)

Arweave is a Decentralized Storage Network (DSN) that aims to provide a platform for the long-term storage of data. The network primarily hosts “the permaweb,” a permanent, decentralized web with a variety of community-driven applications and platforms. It describes itself as “a collaboratively owned hard drive that never forgets.”

Arweave stands apart from the myriad decentralized storage network alternatives already available thanks to the project’s distinctive Blockweave architecture, miner content moderation policies, and competition-based strategy.

How has FTX impacted Arweave?

Due to the turmoil, neither buyers nor sellers made any significant movements in the market. The FTX disaster has a domino effect that hit the AR coin.

#3 Apecoin (APE)

ApeCoin is the utility and governance token of the Bored Ape Yacht Club (BAYC) community. To put it simply, ApeCoin fuels the Ape ecosystem. An example of an ERC-20 token is ApeCoin. It is a form of built-it-yourself Crypto built on the Ethereum blockchain. On its blockchain, ApeCoin uses a Proof-of-Work (PoW) consensus technique to verify transactions.

How has FTX impacted Apecoin?

The Bored Ape Yacht Club (BAYC) was unable to leverage its popularity to counter the adverse effects of the FTX collapse, which left the market in turmoil. BAYC’s floor price dropped by around 10% within a few days of the collapse. Wu Blockchain has stated in a report that Yuga Labs has 18 ETH in royalties held on FTX.

#4 NEAR Protocol (NEAR)

A layer-one blockchain called the NEAR Protocol uses sharding technologies to achieve scalability. In addition, NEAR uses Proof-of-Stake (PoS) consensus and smart contracts to safeguard its network. The project is designed as a community-run cloud infrastructure for hosting decentralized applications (DApps).

The NEAR platform offers a number of developer tools, languages, and cross-chain capable smart contracts to help developers create DApps.

How has FTX impacted the NEAR Protocol?

The coin was severely impacted due to the FTX crash, as FTX was among the major Crypto-native investors.

#5 Algorand (ALGO)

Algorand is an open-source blockchain, meaning anyone can view and contribute to the platform’s source code. Pure proof-of-stake (PoS), the operational protocol used by Algorand, selects network validators from the user base. In addition, all ALGO coin holders receive block rewards from Algorand, giving everyone who owns an ALGO token the chance to earn rewards rather than just block producers.

How has FTX impacted Algorand?

Since June 2022, the price of Algorand has been flat. It finally managed to break out early in November; however, it rapidly dropped amid the FTX crash that caused the crash.

Bottom line

Crypto is a risky investment, and you should make investment decisions accordingly. A small portion of your total portfolio should be made up of high-risk investments, and diversifying the types of Cryptos you purchase can lower the risk of investment.

Happy Trading!

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
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Harshita Shrivastava

Harshita Shrivastava is an Associate Content Writer with WazirX. She did her graduation in E-Commerce and loved the concept of Digital Marketing. With a brief knowledge of SEO and Content Writing, she knows how to win her content game!

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