- Pantera Capital started a campaign to purchase SOL tokens from FTX.
- Investors offered SOL tokens at a major discount.
- The sale aims to pay creditors while minimizing market impact.
FTX’s huge Solana holdings have been a headache for both SOL holders and the bankrupt exchange. If FTX unwinds its position too quickly, SOL may tank, destroying a large part of FTX’s assets with it.
However, recent reports suggest that venture firm Pantera Capital came out with a plan to solve this issue. The firm is raising substantial capital to purchase these tokens, hoping to repay creditors while protecting Solana’s market position.
Pantera Capital Offers to Solve FTX’s Solana Woes
On Friday, March 8, reports surfaced that Pantera Capital, a crypto-focused asset manager with a portfolio worth $5.2 billion, is raising capital to purchase Solana (SOL) tokens from the bankrupt estate of FTX.
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Pantera Capital’s initiative involves purchasing the SOL tokens at a price that is 39% below the 30-day average market rate, or at a fixed price of $59.95 per token. This discounted purchase is conditioned upon an agreement to a vesting period of up to four years.
This move would provide the FTX estate with the necessary liquidity to address its creditor obligations without precipitating a market shock that could adversely affect the SOL price. The discounted price, on the other hand, allows investors to benefit from the potential risk to Solana.
What Pantera Capital’s Purchase Means for Solana
The four-year vesting condition is part of a strategy to mitigate the sales’ potential negative impacts on the token’s market price. The rationale behind this approach is to facilitate the gradual release of SOL tokens into the market, thereby securing funds for FTX creditors without causing a sudden price drop.
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This is especially significant due to the sheer volume of SOL tokens held by the FTX estate: approximately 41.1 million tokens. These represent about 10% of the total SOL supply, currently valued at $5.4 billion.
Pantera Capital aimed to close the fundraising effort by the end of February. While the exact amount raised was not disclosed, Bloomberg reported that Pantera had successfully secured some level of funding.
On the Flipside
- It is not clear whether the Pantera Solana Fund will be available to the public for investment.
- Currently, Pantera Capital allows only accredited investors to participate in its funds.
Why This Matters
Pantera Capital’s move is emblematic of a maturing cryptocurrency market, where strategic, long-term investments by institutional players play a crucial role in shaping the trajectory of blockchain projects and platforms.
Read more about FTX’s Solana holdings:
FTX Holdings Hang Over Solana, But Community Is Undisturbed
Read more about new solutions for the problem of DeFi liquidity:
