FTX or Alameda Slumps Issued Wrapped Tokens, No Longer Redeemable

Coingecko stats show that Wrapped bitcoin on Sollet has decreased by more than 60% over the past day from its native bitcoin's current price of $16,811. In comparison, Wrapped ETH on Sollet is also down for the past 24 hours, but only by roughly 8% to $1,209. At the time of writing, native ETH is trading for $1,261.

Notably, Coingecko is posting the following caution on its site for both wrapped tokens, soETH and soBTC:

“soBTC tokens are wrapped BTC tokens issued by FTX or Alameda. Both these entities have filed for Chapter 11 bankruptcy, and the BTC tokens are no longer redeemable.”

Rather than holding or trading genuine Bitcoin or Ethereum, users can store or exchange wrapping tokens for these assets, like the ones for Bitcoin or Ethereum, on the Solana blockchain.

As a result of the majority of Solana wrapped commodities being held by the now-defunct cryptocurrency exchange FTX and Alameda study, the wrapped tokens are no immediately convertible and will likely drop to zero, according to the founder of the open source portfolio tracking tool Roktiapp.

Reactions to the wrapped resources were merely people trying to alert individuals to the fact that the wrapped tokens were fake tokens. Tweeted by a user using the pseudonym meow,

“The worst case scenarios for soBTC came true - nothing is backing it, rogue devs have access to FTX accounts & no one takes any responsibility.”

As of now, the news about FTX's demise only seems to get worse.

Yesterday, Blockchain.News revealed that Cyprus officials were about to suspend FTX's European License. FTX Europe was asked to “stop its operations and to begin taking a number of procedures for the protection of the investors” by CySEC on November 9.

As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!

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