After the Chapter 11 bankruptcy filed by FTX, the wrapped tokens issued by the crypto exchange or its sister trading shop, Alameda Research, have now suffered a price drop.

According to data from Coingecko, Sollet-wrapped bitcoin is down more than 60% in the last 24 hours, falling from the current $16,811 of its native bitcoin. In contrast, Wrapped ETH on Sollet is down as well, but only around 8% to $1,209 over the same 24-hour period. Native ETH is trading at $1,261, at the time of writing.

In particular, for both wrapped tokens, soETH and soBTC, Coingecko displays a warning notice on its website that reads: “soBTC tokens are wrapped BTC tokens issued by FTX or Alameda. Both entities have filed for Chapter 11 bankruptcy, and BTC tokens are no longer redeemable.”

Wrapping tokens, such as Bitcoin or Ethereum, on Solana make these assets available for use on the Solana blockchain so users can hold or trade them instead of actual Bitcoin or Ethereum.

Founder of Roktiapp, an open source portfolio tracking app, commented on these wrapped assets saying that since most of Solana’s wrapped assets were held by the now-collapsed crypto exchange FTX and Alameda’s investigation means the wrapped tokens are no longer redeemable and will likely hit 0.

The reactions related to the wrapped assets were just individuals trying to warn others that the wrapped tokens were not real tokens. A tweet with the pseudonym meow tweeted,

“Worst case scenarios for soBTC came true: nothing supports it, rogue developers get access to FTX accounts, and no one takes any responsibility.”

So far, the news about the FTX crash just keeps getting worse.

Yesterday, Blockchain.News reported that Cypriot regulators will soon suspend FTX’s European license. Meanwhile, on November 9, CySEC requested FTX Europe to “suspend its operations and immediately proceed with a series of actions for the protection of investors.”

Image Source: Shutterstock