FTX Estate Bullish on Solana, Stakes Over 5.5 Million SOL Coins
FTX estate has shown its bullishness on Solana’s native token SOL by staking over 5.5 million SOL coins. The transaction, detected by blockchain tracker Whale Alert and later identified as an FTX estate address, involved sending the coins to Figment, a staking validator firm for institutional investors. The staked coins are worth $122 million and represent only a small fraction of FTX’s holdings of SOL.
The Concept of Staking
Staking refers to the act of locking up a specific amount of coins for a predetermined period of time. In return for securing the network with their stakes, staking holders receive rewards in the form of SOL coins.
FTX’s Relationship with Solana
FTX was an early investor in Solana and receives a significant volume of unlocked SOL coins every month according to a vesting schedule. The FTX estate has the option to liquidate these holdings at any time. It is overseen by a bankruptcy trustee whose primary role is to recover assets for the exchange’s creditors.
Sale of $1.3 Billion in SOL Approved
In September, a U.S. court approved the sale of $1.3 billion in SOL from FTX, causing concerns among holders about a potential price slump. To prevent additional pressure on the crypto market, the bankruptcy court mandated that the sale occur in weekly batches through an investment adviser. This decision led to a two-month low price of $17.34 for SOL on September 11.
FTX’s Digital Assets and Legal Troubles
FTX holds $3.4 billion in various digital assets, including Solana, Bitcoin, Ether, and Aptos. Since filing for bankruptcy protection in November, the exchange has recovered over $7 billion. Meanwhile, FTX co-founder Sam Bankman-Fried is currently on trial in Manhattan on charges of fraud and conspiracy. If convicted, he could face up to 115 years in prison.
Hot Take: FTX Estate Continues to Show Confidence in Solana
FTX estate’s decision to stake over 5.5 million SOL coins further demonstrates its confidence in the potential of Solana. Despite ongoing legal troubles and the court-approved sale of SOL, FTX remains committed to the project by actively participating in staking activities. This move not only benefits FTX but also contributes to the security and stability of the Solana network. As the crypto industry continues to evolve, it will be interesting to see how FTX’s involvement with Solana unfolds and how it impacts the overall market dynamics.
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