Is Solana Foundation stranded on FTX?

The Solana Foundation said Monday it has tens of millions of dollars in cryptocurrencies stranded on FTX – as well as 3.24 million common stock shares in Sam Bankman-Fried’s bankrupt crypto exchange. In a blog post, the Foundation said it held 134.54 million SRM tokens and 3.43 million FTT tokens on FTX when withdrawals went dark on Nov. 6.

Why did FTX lose the FTT token?

FTT is the native token for the FTX exchange and is primarily used as a payment source for trading fees. It also gave holders exclusive benefits, including staking rewards and discounts. But the token has lost this utility after the bankruptcy of FTX.

Is investing in FTT a good idea?

In cases like FTX, which appeared to the industry to be a strong global impact player, investing in FTT may have looked like a good idea. That was until we consider how many of those tokens a rival cryptocurrency exchange held. As noted above, Binance held a large number of FTT tokens: 23 million, worth around $529 million.