- FTX’s bankruptcy estate has finally unloaded its Solana tokens.
- The estate reportedly sold its SOL tokens for a massive discount.
- FTX’s sale of its SOL tokens is expected to raise institutional demand for its tokens further.
The crypto industry was gripped with fear after news broke that defunct crypto exchange FTX received court approval to unload its massive stack of Solana. With a whopping 20% of all SOL tokens valued at over $10 billion, the market braced itself for a potential sell-off that could shatter the token’s historic rally.
However, while everyone feared for the worst, recent updates revealed that FTX finally offloaded a significant portion of its SOL tokens, sparking a rather unexpected market reaction.
FTX Sells Solana for a Discount
FTX’s bankruptcy estate recently made headlines after selling two-thirds of its Solana stash at deeply discounted rates. According to Bloomberg, the defunct crypto exchange, to repay its customers, sold 30 million of its locked-up SOL tokens at a bargain price of $64 each, raking in over $2 billion in the process.
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The 62% discount resulted from the tokens being locked up, meaning it will take a while before they can be sold to retail. According to official documents, FTX’s locked-up Solana will be unlocked gradually until January 2028.
FTX’s sale comes six months after it received court approval. The delay stemmed from rising institutional interest, particularly Galaxy Trading, a subsidiary of Galaxy Digital, which set up a $620 million fund to buy FTX’s SOL.
At press time, FTX still held 41 million locked-up Solana tokens, valued at a staggering $7.5 billion. Interestingly, the market did not react to the sale, with SOL still hovering confidently above $175 at press time.
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Since FTX’s collapse in November 2022, investors and institutions have eagerly vied for a slice of its SOL stash. With the recent sale, the demand for these tokens is expected to soar even higher.
Rising Demand For FTX’s Solana Stash
Solana makes up the largest percentage of FTX’s digital asset holdings, with Bitcoin, Ether, and Aptos following closely behind. Institutions and major asset managers like Neptune and Pantera have actively raised funds to snag FTX’s crypto treasure trove.
Pantera, a $5.2 billion asset manager, raised funds to buy over $250 million worth of SOL from the FTX estate in early March. Meanwhile, Neptune Digital Asset Corp also jumped into the fray, announcing its purchase of $1.7 million worth of SOL at $64 each, with unlocking set for March 2025.
On the Flipside
- FTX owes nearly $9 billion to its customers. The exchange has already recovered $7 billion.
- FTX estate announced that it would repay its customers based on November 22, 2022, rates, when Solana was valued at $10, contrasting with its current $175 price tag.
- FTX estate aims to begin repaying its customers by the end of 2024.
- Solana co-founder Anatoly Yakovenko proposed direct distribution of FTX’s SOL tokens to users rather than through legal channels.
- Several research publications have hailed Solana as the most popular blockchain of 2024.
Why This Matters
FTX’s sale of its Solana holdings is a positive development as it brings the exchange closer to its goal of fully repaying its customers. The absence of adverse effects on Solana’s price also offers insight into future offloading events by FTX, helping alleviate market apprehensions.
While FTX sells its Solana bags, Genesis buys more bitcoins:
Genesis Bags 32,000 Bitcoins After Selling Grayscale Shares
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