FTX Bankruptcy: Will the Selloff Put Downward Pressure on Solana Tokens?
The bankrupt FTX exchange is seeking court approval to convert its crypto assets into fiat currency to repay creditors in full. The court hearing for the motion is scheduled for September 13, and if approved, it could result in the recovery of up to $3.4 billion. This development has caught the attention of creditors and token holders, who are eagerly awaiting the outcome.
FTX’s SOL Holdings and Vesting Restrictions
FTX and Alameda purchased a significant amount of Solana (SOL) tokens from the Solana Foundation in 2020. However, most of these tokens are locked in vesting until 2028, meaning FTX can only sell a limited amount each week. Despite this restriction, concerns have been raised about the potential impact of the selloff on SOL’s price. Some believe the short-term impact will not be as severe as expected, while others believe the market may be affected due to the significant supply of tokens from FTX and other investors.
Current Price Outlook for SOL
In anticipation of the selloff, traders have already started offloading SOL, causing the token’s price to drop by 5.8% and reach an intraday low of $17.87. The selling pressure has led to an 11% decline in SOL’s value over the past two weeks, making it the worst-performing cryptocurrency in the top 30. As of now, SOL is trading at $18.18.
Hot Take: Potential Impact on SOL
The outcome of the FTX bankruptcy hearing and the subsequent selloff of its crypto assets has created uncertainty around SOL’s price. While some believe the impact will be limited, others express concerns about the oversupply of tokens and the potential negative effects. As the market awaits the court’s decision, SOL continues to face downward pressure, with traders and investors closely monitoring the situation.
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