The recent Solana Breakpoint conference in Amsterdam was viewed as a significant catalyst for the positive momentum behind Solana. In a wide-ranging interview, Solana co-founder Anatoly Yakovenko discussed the profound impact of the FTX collapse on the ecosystem's startups and made a compelling case for why the world should now turn its attention back to Solana.
The FTX and Alameda Research Impact on Solana Startups
Anatoly Yakovenko revealed a startling statistic: approximately 20% of all projects within the Solana ecosystem had received investment from either FTX or its affiliated trading firm, Alameda Research. Of these, about 5% held a substantial portion of their operational assets on the FTX exchange when it collapsed.
The true damage, Yakovenko explained, was not just the loss of an investor but the catastrophic evaporation of vital runway capital. These teams had entrusted their funds to an exchange that was widely considered trustworthy within the industry. Watching their long-term operational capital vanish overnight was a devastating blow, threatening the very existence of these innovative companies.
The Case of Coral: A Deep Financial Wound
The severity of this fallout is perfectly illustrated by the experience of Coral, a major developer of blockchain infrastructure on Solana. The CEO publicly detailed the extent of their losses. In September 2022, Coral had successfully closed a $20 million funding round led by FTX Ventures. The subsequent bankruptcy of FTX resulted in Coral losing $14.5 million of that capital, a massive setback for any organization.
Despite these sobering examples, Yakovenko struck an optimistic tone, expressing his relief and admiration that the vast majority of Solana-based project teams managed to navigate the crisis and survive its immediate aftermath.
Why the Focus is Returning to Solana
Yakovenko passionately argued that the ecosystem has weathered the storm and emerged leaner and more focused. He stated that the time is now to look seriously at Solana again.
He emphasized that a major overhang on the ecosystem—the centralization of influence and capital from entities like FTX—has been removed. This has cleared the way for a new wave of development driven by compliant, builder-first teams who are fundamentally committed to the network's long-term health. Their growing influence, according to Yakovenko, is having a transformative effect, helping the entire community get back on its feet.
Yakovenko pointed commentators towards a tweet from venture capitalist Chris Burniske for a broader perspective. In the wake of the FTX bankruptcy, Burniske articulated a compelling thesis on Solana's enduring value proposition, arguing that the core technology and its potential remained intact despite the catastrophic failure of a key investor.
This sentiment echoes a broader theme of resilience. During the darkest days of the crisis, even prominent figures like Ethereum's Vitalik Buterin expressed hope that the Solana ecosystem would be given a fair chance to develop and recover, separate from the actions of a single bad actor.
Building for the Future: A Compliant and Decentralized Ecosystem
The current builder ethos within Solana is markedly different. The focus has decisively shifted towards sustainable, compliant growth and technological innovation. Developers are leveraging Solana's core strengths—its high throughput and low transaction costs—to build practical applications that serve real user needs, from decentralized finance (DeFi) and gaming to non-fungible tokens (NFTs) and decentralized physical infrastructure networks (DePIN).
This renewed focus is not just about recovery; it's about building a more robust and decentralized foundation for the future of web3. The community is actively exploring advanced tools and strategies to enhance their projects. For those looking to dive deeper into the technicalities of on-chain development, you can explore more strategies and developer resources available for building scalable applications.
Frequently Asked Questions
What percentage of Solana projects were affected by the FTX collapse?
Approximately 20% of projects in the Solana ecosystem had received investment from FTX or Alameda Research. A smaller subset, about 5% of all ecosystem projects, also held significant operating capital on the FTX exchange, which was lost during its bankruptcy.
How is the Solana ecosystem recovering from this event?
The recovery is being driven by a new wave of development focused on compliance and technological innovation. With the major overhang of FTX's influence gone, builder-first teams are creating practical applications, strengthening the network's decentralization and long-term viability.
Why are developers still choosing to build on Solana?
Developers are attracted to Solana's technical advantages, namely its high transaction speed and low cost. Despite past association with a bad actor, the underlying blockchain technology remains powerful, providing a strong foundation for scalable decentralized applications.
What does "compliant growth" mean for Solana?
Compliant growth refers to projects prioritizing regulatory clarity and operating within established legal frameworks. This shift aims to build sustainable businesses and foster greater trust with users and institutions, moving away from the "wild west" image often associated with crypto.
Is Solana truly decentralized after its association with FTX?
Yes, the departure of FTX has actually increased the network's decentralization. Influence and development are now more distributed across a diverse range of independent teams, contributors, and investors who are aligned with the network's success rather than a single entity's agenda.
Where can I learn more about building on Solana?
A wealth of information exists within the official Solana documentation and developer portals. For a comprehensive overview of tools and protocols, you can view real-time tools and platforms that support the ecosystem.
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