FTX Stakes 5.5 Million Solana (SOL) Worth $122 Million
Recent reports indicate that the FTX estate has staked 5.5 million Solana (SOL), which is valued at $122 million. This move comes at a time when there are concerns about the defunct crypto exchange liquidating a significant portion of its SOL holdings, potentially leading to a bearish trend.
FTX Identified as the Source of Whale Transaction
On October 14, blockchain tracking platform Whale Alert reported a transfer of 5.5 million SOL between two unknown wallets. A crypto analyst named ashpool later revealed that FTX was behind this transaction. The exchange had delegated the 5.5 million SOL to the Figment staking service, an active validator on the Solana network.
FTX’s SOL Holdings and Liquidation Concerns
FTX holds a significant amount of SOL, with 55.8 million SOL worth $1.16 billion. However, most of these tokens are currently staked, and FTX only has access to 7 million SOL as of September. There were fears of a market sell-off when Alameda Research, FTX’s defunct trading wing, unstaked 9.1 million SOL worth $212 million on October 6.
FTX’s Reassuring Move for Traders
The recent decision by FTX to stake an additional 5.5 million SOL indicates that the exchange intends to hold onto its SOL investments for now. This can be seen as a reassuring move for traders who were concerned about potential liquidation by the FTX estate.
SOL’s Performance Despite Worries
Despite concerns surrounding FTX and potential liquidation, SOL has seen a 16.06% increase in the last month. Rumors that FTX could “switch off” the Solana blockchain to liquidate traders’ positions were debunked. At the time of writing, SOL is trading at $21.98 with a 2.34% gain in the last day.
Hot Take: FTX’s Staking Signals Confidence in SOL
The decision by FTX to stake 5.5 million SOL demonstrates the exchange’s confidence in the future of the Solana ecosystem. This move reassures traders who were concerned about potential liquidation and suggests that FTX is committed to holding onto its SOL investments. With SOL’s recent price performance and debunked rumors, it appears that the market sentiment towards Solana remains positive.
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