Solana (SOL) nosedived in the past week, fueled by Solana FUD (Fear, Uncertainty, and Doubt) syndrome triggered by a recent revelation linking SOL token to the now-defunct FTX exchange. This sudden reversal came after a recent rally that had seen Solana gain over 60% in less than a month.

The FUD surrounding Solana, combined with the price crash, sent panic through the crypto community. Some users fear that the FTX connection could exert further bearish pressure on SOL, potentially leading to a prolonged Solana price crash.

Crypto analyst Mezoteric highlighted the severity of the situation on X (formerly Twitter), suggesting that the FTX-linked revelation could create a $6 billion selling pressure for Solana.

Mezoteric shared excerpts from a publication highlighting an ex-FTX employee functioning as a whistleblower, revealing that the defunct exchange held 8% of Solana’s token supply. According to the publication, FTX and Alameda Research held the SOL tokens in secret wallets. It claimed such an amount represents a substantial market influence and underscores the opaque financial practices that led to FTX’s downfall.

Notably, Solana supporters responding to the post attempted to debunk the poster’s predictions, dismissing them as FUD and propaganda. One respondent stated that some of the best restructuring lawyers in the U.S. handled the FTX bankruptcy. According to him, there is no plausible chance that FTX and Alameda could have hidden 8% of the SOL supply.

SOL crashed from a recent $193.89 high after its most significant rally in Q2 2024. The altcoin reversed amid more bullish predictions, registering six consecutive days of bearish pressure. TradingView’s data shows that SOL has lost over 23% of its value in the last six days and traded for $151.78 at the time of writing.