A Significant Sale in the Crypto Space: FTX Bankruptcy Trustees Offload Solana Tokens
In a significant development, reports indicate that FTX bankruptcy trustees have sold a substantial portion of a $2.6 billion stash of Solana (SOL) tokens at a deeply discounted price. The sale involved industry giants such as Galaxy Trading and Pantera Capital, according to sources familiar with the matter as reported by Bloomberg.
The Solana Tokens’ Four-Year Journey
According to the reports, the FTX estate managed to sell between 25 million and 30 million locked-up Solana tokens at $64 per token, resulting in proceeds of up to $1.9 billion for the estate. Galaxy Trading, under the leadership of Mike Novogratz’s Galaxy Digital, raised around $620 million for a fund specifically created to purchase SOL from the FTX estate. Investors in this fund will be subject to a 1% management fee and will benefit from staking rewards.
- The 41 million SOL tokens sold by the FTX estate are currently locked according to a pre-agreed vesting period, making them unavailable for trading.
- These tokens will gradually become available for sale over the next four years, potentially impacting SOL’s price trajectory.
Interest from Prominent Figures in the Sale
FTX co-founder Sam Bankman-Fried, who is currently serving a 25-year prison sentence for fraud, was a significant supporter of SOL tokens. Despite his incarceration, Bankman-Fried has actively promoted SOL as an investment opportunity, showcasing his positive outlook on the protocol.
- Giant asset manager Pantera Capital has reportedly raised funds to acquire up to $250 million worth of SOL tokens from the FTX estate.
- Vancouver-based Neptune Digital Assets Corp. also recently purchased a significant number of SOL tokens from the estate.
Creditors Enter Dispute Over FTX Bankruptcy Ruling
FTX creditors have raised concerns about the bankruptcy ruling, which determined the amount each party should receive based on a significantly lower SOL price at the time of the filing. As SOL’s price surged in recent months, some creditors felt they were being under-compensated for their claims.
- One creditor, Sunil Kavuri, emphasized that the SOL tokens at stake are the property of the creditors and should be paid at the current market value.
- Bankman-Fried acknowledged clients’ frustrations with the delay in receiving full payment, noting their expectations of timely and fair compensation.
The Current State of SOL Price
As of now, the price of SOL stands at $175, representing a slight decrease within the last 24 hours and over the past week. This price movement reflects ongoing fluctuations in the cryptocurrency market.
By
By
By
By