We Are Delisting Solana From the Fumbi Index Portfolio and From the Fumbi Staking Portfolio
Security and protection of our clients’ funds are one of the main pillars of Fumbi. Our experts at Fumbi constantly monitor the situation in the cryptocurrency market and evaluate all risk factors that could in any way negatively affect our products and your investments in the future.
The liquidity problems of the crypto exchange FTX as well as its sister company Alameda Research have brought a lot of uncertainty to the cryptocurrency market. Poor management of liquidity and risk management by FTX led to the fact that the exchange was forced to suspend withdrawals for its clients and is currently facing huge financial problems.
Alameda Research’s balance sheet revealed that it owns a huge amount of Solana (SOL) coins, and so does the FTX crypto exchange since the owners of FTX and Alameda Research are closely connected to the team behind the development of the Solana smart contract platform. Fumbi’s risk management team agreed at its meeting that there is currently an increased risk with this cryptocurrency, which could have a significant negative impact on the price of this asset.
As part of the proper care for our clients, based on the last few days’ events, we have decided to remove Solana (SOL) from the Fumbi Index Portfolio and our Fumbi Staking Portfolio. In the case of the Fumbi Index Portfolio, no additional cryptocurrency will be added to it until the next regular update, scheduled for 1/12. 2022. All funds allocated in the Solana cryptocurrency will be distributed among other assets in the portfolio according to their corresponding weights.
In the case of the Fumbi Staking Portfolio, Solana will be replaced by the cryptocurrency Flow, which is also part of our Fumbi Index Portfolio. Cryptocurrency Flow significantly strengthened its fundamentals in recent months when it became one of the platforms that Meta will support in the integration of NFTs into the Instagram app. We perceive the fundamentals of this cryptocurrency to be very strong. Furthermore, Flow has behind it several important players from the world of cryptocurrencies, including Digital Currency Group, Andreessen Horowitz and Haskey Capital.
The team of experts from Fumbi will actively monitor the situation in the FTX case and its impact on the Solana cryptocurrency. In case of stabilisation of the situation and clarification of all matters, Fumbi does not rule out re-adding Solana cryptocurrency (SOL) to our products.