Due to the recent price volatility of Solana (SOL) as well as other digital assets in the market, Bitkub Online Co., Ltd. (“the Company”) would like to clarify the summary of related situations to serve as an information source for our customers and investors, as well as clarification of the Company's operating guidelines for SOL. The details are as follows.
SOL situation sequence
- Due to the liquidity shortage of FTX which has Sam Bankman-Fried As Chief Executive Officer and Founder as well as Alameda Research, Alameda Research has been affected by the situation.
- According to a report on CoinDesk, it stated that Alameda Research of Sam Bankman-Fried held a large amount of SOL along with other digital tokens including MAPS and OXY which are tokens in the Solana ecosystem.
- On 10 November, over 54 million tokens of SOL, worth over $800 million, were unlocked. The said amount accounted for 15% of SOL's circulating supply. In addition, the relationship between Alameda Research and SOL caused worries to investors. As a result, many investors panicked and SOL were sold-off; this affected the volatility of digital asset prices in the market and SOL prices decreased sharply. This incident was also reported on CoinDesk.
*Staking (or stake) is an act when an investor deposits specific tokens into a blockchain system for a specified period of time to serve as a validator or to receive returns in various forms.
In this regard, the Company would like to inform you about the operating guidelines of Bitkub Exchange for SOL as follows:
- The deposit, withdrawal, and trading (buy-sell) of SOL are still available as usual on our platform. However, if there are any changes in the future, such as if the price of SOL significantly drops which leads to high risks for our customers, the Company may consider suspending the trades of SOL on the Bitkub Exchange platform temporarily, etc. The Company will then publish further announcements to inform our customers in advance before proceeding with any changes.
- The Company is in the process of contacting the token issuer through the official channel to request clarifications on the aforementioned issues and further action guidelines.
- Please do your research to understand the risks before trading FTT and exercise caution when investing. Due to price volatility, the Company highly recommends you study the SOL Whitepaper, and closely follow the news from the official channel of the token issuer at https://twitter.com/solana.
- This announcement is a notice to encourage investors to be cautious in trading digital assets only. The Company is not responsible for and does not certify or confirm the accuracy, completeness, correctness, currentness, or reliability of the information contained in this announcement including any information of any third parties. In addition, the Company does not consider any information published as legal advice or opinion, and shall not be regarded as giving advice on trading or investments in digital assets. All investment decisions are the sole decisions of the investors, and the investors should learn more about the details of digital assets before making investment decisions.
- If the price of SOL falls below 0.0001 THB which is the minimum price that our trading system supports, the Company will consider temporarily suspending the trading of the token. Further announcements will be published in advance before we take further action regarding the matter.
- Investments in digital assets contain high risks. Please be advised to research properly and thoroughly, and make a careful decision before taking any action, especially during the volatility of the digital asset market. Please note that the Company is not responsible for any loss or damages, or profits and losses from investing in digital assets related to this announcement and/or from the use of the information contained in this notice.
- The Company reserves the right in its sole discretion to amend or change these announcement details, and we will further notify you if there is any change.
We apologize for any inconvenience caused and thank you for your continued trust in the Company.