FTX Dives Into Solana With 5.5 Million Coin Stake In Real Estate

The FTX estate demonstrates a strong belief in Solana. This is evident from their decision to stake over 5.5 million SOL on Oct 13. On-chain data reveals that an FTX-associated wallet transferred these coins to Figment, a staking validator firm catering to institutional investors.

Whale Alert, a blockchain watchdog, discovered the transaction. Later, an anonymous on-chain researcher named Ashpool, identified the address as belonging to an FTX estate. Moreover, the coins at risk represent only a small portion of FTX’s SOL holdings and are valued at $122 million.

Staking involves locking a set amount of coins for a specific period. People who participate in staking receive SOL coins as a reward for contributing to the network’s security through their stakes.

FTX, an early investor in Solana, consistently receives a significant release of SOL tokens according to the predetermined vesting schedule. Additionally, the FTX estate, overseen by a bankruptcy trustee, has the flexibility to sell these holdings as needed with the primary goal of recovering assets for the exchange’s creditors.

FTX Cryptocurrency Holdings: Solana & More In Top 10

Following a September court approval, $1.3 billion worth of SOL from FTX was granted the green light for sale, causing concerns among holders about a potential drop in price. To alleviate market pressures, the bankruptcy court mandated that the sale be conducted in weekly increments through an investment adviser. As a result, SOL’s price plunged to a two-month low of $17.34 on Sept 11.

FTX currently holds $3.4 billion in Digital Assets A, placing it among its top 10 assets alongside Solana, Bitcoin, Ether, Aptos, and other cryptocurrencies. According to court documents from September, the exchange has recovered over $7 billion since seeking bankruptcy protection in Nov 2022.

However, Sam Bankman-Fried, the co-founder of FTX, currently stands trial in a Manhattan district court. The charges against him include fraud and conspiracy to conduct fraud. If proven guilty, he may face a sentence of up to 115 years in jail.

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.