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Gaming tokens across the Solana ecosystem face the FTX contagion
Top gaming projects said their exposure to FTX was “minimal”
Trading volumes of blockchain games have also plunged
Almost all gaming tokens across the Solana ecosystem are facing a tough time as users are losing faith in gaming projects. This comes after the collapse of the FTX empire began to spread across the web3 sector. Since many considered Solana to be FTX founder Sam Bankman-Fried’s pet project, the network is facing the heat more. In fact, SBF had previously pledged $100 million to Solana’s gaming ecosystem. However, this hardly appears to be a possibility now since his business conglomerate filed for bankruptcy.
Amidst this loss of support, the price of gaming tokens on Solana was plunging throughout the past week. In fact, some of them plummeted even more than Solana’s native coin, SOL.
One of the top gaming projects of the network, Aurory became one of the biggest casualties in this chaos. It is a turn-based role-playing game and its in-game token price has faced a recent downfall of more than 70% in the last seven days. However, to soothe the concerns of investors and users, Aurory took to Twitter to announce that its exposure to FTX was “minimal.” It also clarified that its treasury funds are distributed across multiple wallets.
2/ We managed to avoid any losses during the Luna contagion, but we were exposed recently on FTX, as they were one of our market makers. This exposure was minimal, as the majority of our treasury funds are split across multiple wallets.
— Aurory (@AuroryProject) November 9, 2022
Another top gaming project on Solana is Star Atlas, which is a space-themed strategy game. It witnessed its coin plummeting more than 36% in the last week. However, the CEO of Star Atlas, Michael Wagner said that only a portion of its “liquid cash assets” had been affected.
Although, crypto games outside the Solana ecosystem have also been affected. Trading volumes of DeFi Kingdoms, The Sandbox, and Axie Infinity have also witnessed falls between 16.4% and 36.3%.
Solana Price Behaviour
SOL has suffered the hit of the FTX chaos the most because of its ties to Alameda Research. It was previously revealed that Alameda held large hordes of SOL on its balance sheet. As news of its insolvency grew clearer, investors rushed to dump the token before Alameda.
Consecutively, in the past few weeks, SOL has slipped from the 9th to 15th position in terms of crypto market cap. This is after the digital asset fell over 50% in the past week alone, making it one of crypto’s biggest losers. This was further accelerated by a huge unstaking event that saw millions of SOL tokens entering the market.
