The FTX Bankruptcy Estate Stakes $122 Million in SOL Tokens and $5 Million in ETH
The FTX bankruptcy estate has recently staked approximately $122 million in Solana (SOL) tokens, according to on-chain data. The wallet associated with FTX transferred the SOL tokens to Figment, a staking validation entity known for serving institutional clients. Additionally, the estate staked around 3,200 Ethereum (ETH), equivalent to approximately $5 million. Both crypto wallets are linked to Alameda Research, which is the sister trading firm of FTX.
What is Staking and its Importance?
Staking involves securing a certain amount of tokens for a specific period of time in order to fortify proof-of-stake networks like Ethereum and Solana. Participants who stake their tokens often receive additional coins as a reward. This process plays a crucial role in strengthening these networks.
FTX Estate’s Proposal and Approval
In August, FTX’s leadership proposed the endorsement and validation of protocols for selling reclaimed cryptocurrencies during the bankruptcy proceedings. This proposal aimed to hedge against unfavorable shifts in Bitcoin and Ethereum values before liquidation. The proposal was approved, and Galaxy Digital, led by Mike Novogratz, was entrusted with overseeing the sale of assets estimated at $3.4 billion, including Bitcoin, Ethereum, Solana, and others.
FTX’s Decision to Stake Select Cryptocurrencies
FTX’s original proposal also mentioned the potential of staking select cryptocurrencies to generate passive income. It seems that the exchange’s bankruptcy estate has chosen to utilize this option.
Hot Take: FTX Bankruptcy Estate Stakes Millions in SOL Tokens and ETH
The FTX bankruptcy estate has made a significant move by staking approximately $122 million in Solana (SOL) tokens and around $5 million in Ethereum (ETH). This decision not only strengthens the proof-of-stake networks but also potentially allows for passive income generation. With the approval of its proposal, FTX’s bankruptcy estate is now set to sell assets worth billions of dollars, including Bitcoin, Ethereum, and Solana. The involvement of Galaxy Digital in overseeing the asset sale adds further credibility to the process. Overall, this move showcases FTX’s commitment to maximizing the value of its reclaimed cryptocurrencies and mitigating risks in a volatile market.
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