An unspoken problem has been found on the internet by the evil-eyed Twiterattis. Things are not looking good for the Solana ecosystem’s wrapped Sollet tokens, specifically soBTC, which are used widely across lending and AMM services. The main catch here is that nobody knows if the tokens are issued by FTX or Alameda.
Wrapped crypto tokens are cryptocurrencies used on the DeFi platform that are pegged to the value of another native cryptocurrency or other assets such as gold, equities, shares, and real estate. To help create liquidity in the market, the SOBTC token was introduced at the beginning of the Solana DeFi cycle.
They were also designed to be backed 1:1 by either BTC or ETH. The Solana team developed Wrapped SOL to encourage greater acceptance and utilization of the Solana network (WSL). A secure multi-sig wallet containing SOL tokens that back WSL in a 1:1 ratio.
These wrapped assets were allegedly issued by FTX and backed by FTX-owned assets. SolScan estimates the market cap of SOBTC at $264,125,805.80 at the moment with 16,149.99 of current supply.
8,361 people are the total number of holders, which puts them at risk due to the price’s fast fluctuations following the FTX collapse. The SOBTC is currently trading at $15,497 and the BTC is currently trading at $16,400. Although, they are pegged at a 1:1 ratio.
People on the Internet are concerned that $soBTC, the wrapped Solet token, was created by FTX and used in lending and AMM platforms, even though this issue has not been discussed yet. It is possible that they will not even accept wrapped BTC wallets as FTX has stopped accepting withdrawals. It should be emphasized that FTX is one of Solana’s largest liquidity providers.
At the time of writing, one SOBTC is trading at $12,956 and is down by 30 percent. It has hit a low of $8,636 in the last 24 hours.
