Blog BG Img

An update on Nova in the wake of the FTX news

November 18, 2022
Company Update
Minute Read Time

Before we dive into all things Nova, we want to offer our condolences to anyone who has been impacted by the recent FTX news. The entire crypto industry, the Solana ecosystem especially, has been rocked by the collapse of the exchange.It was a stark contrast to the amazing energy and optimism that echoed throughout Solana's annual Breakpoint conference in Lisbon. 

There is some incredible activity occurring within the Solana ecosystem. Every founder, builder and team member we met in Lisbon were all passionate and motivated to do well. Despite the setbacks, we remain very optimistic about Solana's future.

The Solana ecosystem will take time to recover, that’s for certain. Trust has been lost, particularly with Serum and Sollet wrapped assets such as $SOBTC suffering breakdowns in service, which are heavily relied on.

With that said, it's been great to see the ecosystem band together to cover infrastructure and protect users. These kinds of actions will go a long way to nurturing the community and recovering trust quickly.

These recent events further justify and highlight the importance of non-custodial asset management infrastructure. Everyone within the crypto ecosystem should have the rights and protection to transact their digital assets with confidence and without dependency on others.

We're energized by the clear need for protocols like Nova and know that we are well prepared for the future and beyond.

The impact on Nova’s Beta launch

Speaking more specifically on the Nova product progress, as you can imagine, we have been set back slightly by these recent events. 

Serum was a core part of Nova's swap infrastructure and were supporters of our protocol vision from the beginning, so it was deeply unfortunate for the project to collapse in the way that it did. 

Fortunately, we had already started to expand our ability to source on-chain liquidity. As mentioned in our October Dev Update, we've completed the integration of Orca, which we’re using as our primary swap method during this time of turbulence.

We've also had to adapt the range of assets Nova provides access to initially to accommodate some of the recent uncertainty and depreciation of assets on the Solana blockchain. As soon as remaining tasks and testing are complete, we will have a further update to share with you all.

To be fully transparent, Nova had a small amount of funds that got stuck in FTX. These funds were in transit to a fiat account to pay team members and services. The impact has been minimal and we are fortunate to be in a good position to move forward. Nova has sufficient resources for the immediate future and we are continuing to work toward launch and beyond.

We would like to take this opportunity to thank the Nova community for your patience and resilience during such a testing time. 

We're very appreciative of all the support we've received so far and we're really looking forward to being part of Solana's recovery journey!