Solana’s Wrapped Bitcoin Price Craters After FTX Shuts Exit Ramp

A Solana-based crypto asset tied to the price of bitcoin collapsed in value Friday after CoinDesk reported that FTX US – the only venue left to exchange it for real bitcoin – had frozen withdrawals.

Sollet Bitcoin (soBTC), a so-called “wrapped” asset supposedly backed 1-to-1 with bitcoin, plummeted $10,000 at around 2:00 p.m. Eastern Standard Time, according to DeFi protocol Raydium. It had already spent much of the day trading below its bitcoin peg on the news that FTX had filed for bankruptcy protection.

This story will be updated.