FTX Estate’s Massive Solana Sale Sparks Crypto Market Optimism

The crypto world has been abuzz with news of the FTX estate’s sale of a significant portion of its Solana (SOL) holdings. According to reports from Bloomberg, the estate offloaded approximately $1.9 billion worth of locked-up SOL tokens, amounting to around two-thirds of its total SOL lot valued at $2.6 billion.

The sale, which involved the transfer of up to 30 million SOL tokens at a discounted price of $64 each, has garnered considerable interest from various entities. Notably, Galaxy Trading, a subsidiary of Galaxy Digital, made a strategic move by establishing a $620 million fund to acquire a portion of the FTX estate’s SOL holdings.

This fund carries a management fee of 1%. Similarly, Pantera, a key player in the crypto market, established a $250 million fund in Mar to purchase the discounted Solana holdings of the FTX estate, demonstrating its confidence in Solana’s future.

The sale of the discounted SOL tokens was initially delayed due to ‘significant buyer interest,’ as reported by Bloomberg. This delay indicates the strong demand for the offered assets and a positive market sentiment, potentially driven by the prospect of acquiring SOL at a favourable price. The market’s response further reinforces SOL’s value and potential in the crypto market.

While the FTX estate has sold a substantial portion of its SOL holdings, it still retains many locked-up SOL tokens. According to reports, the estate holds 41 million locked-up SOL, valued at around $7.5 billion based on Solana’s current market price.

“Solana made up the largest percentage of FTX’s digital asset holdings, with bitcoin, ether, and the Aptos blockchain native token APT following behind,” the report stated.

FTX Estate Sparks SOL Optimism

Other entities have also seized the opportunity to acquire discounted SOL from the FTX estate. Neptune Digital, a digital asset firm, reportedly purchased 26,964 SOL at $64 each, totalling $1.73 million, with 20% of that lot unlocking in March 2025. Additionally, Pantera established a $250 million fund in March to purchase the discounted Solana holdings of the FTX estate.

The sale of the FTX estate’s SOL holdings has sparked optimism in the crypto market, particularly surrounding the Solana ecosystem. Solana experienced a significant price dip following the collapse of FTX in Nov 2022, plummeting to lows around $10. However, the token has since rebounded, reaching an all-time high market capitalization of $81 billion in mid-March, primarily driven by the popularity of memecoins.

As of April 6, 2024, Solana’s market capitalization stands at $76.9 billion, making it the fifth-largest cryptocurrency by that metric, according to data from The Block prices. The successful sale of the FTX estate’s SOL holdings has contributed to the overall positive sentiment surrounding Solana and the broader crypto market.

Related Reading | Grayscale Crypto Portfolio Shift: ADA’s Exit & Wall Street’s Influence

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risk.

Comments (No)

Leave a Reply