The FTX Estate’s Second Tranche of Locked Solana Tokens on Auction
FTX estate is in the process of finalizing the second tranche of sales of locked Solana tokens, with bids around the $100 mark coming in from various sources. The estate aims to offload 1.8 million SOL (equivalent to $232 million) through an auction that has spanned the last couple of weeks. The recent bids were accepted on April 25, with KYC procedures and paperwork submissions expected by today, as per undisclosed sources.
Key Details of the Auction
- The locked Solana tokens saw bid amounts ranging from $85 to $110, with claims that bids at $95 and above were successful.
- Two sources expressed doubts about bids lower than $85 being accepted, given the competitive nature of the auction.
- A token price of $95 translates to a 26% discount to current market prices, while $110 represents a 15% reduction.
Galaxy Trading Involvement
- Galaxy Trading was noted to be raising additional funds from investors for bidding on a portion of the locked Solana tokens from the estate.
- Investors were required to commit at least $5 million in the current round, highlighting the significant investment sums involved.
Pantera Capital’s Acquisition
- Pantera Capital reportedly acquired more locked Solana tokens in the latest auction, adhering to a four-year vesting schedule for all tokens.
- They join other prominent investors in capitalizing on the discounted tokens available through the estate’s auctions.
Continued Auctions and Future Sales
The forthcoming auction is scheduled to commence on May 1, according to Figure Markets CEO Mike Cagney, who is spearheading the bidding for the locked SOL tokens. Figure Markets is establishing a special purpose vehicle to facilitate participation in the upcoming auctions, targeting both non-U.S. investors and accredited U.S. investors.
Prior to the latest auction, the estate conducted a substantial sale in March, where locked tokens were sold for $64 each, attracting interest from entities like Galaxy Trading and Pantera. Demand was so robust during that period that investor allocations had to be scaled back. Despite this, recent auctions have seen prices soar higher, indicating continued strong demand for Solana.
Outlook and Market Observations
Galaxy Asset Management, managing the sale of locked Solana on behalf of the FTX estate, opted not to comment on the ongoing proceedings. Requests for comments from the FTX estate remained unanswered at the time of reporting.
Hot Take: Solana’s Auction Dynamics
The success and competitive nature of the recent Solana auctions signify the sustained appeal and demand for the cryptocurrency within the market. Interestingly, bidding dynamics and investor interest continue to propel the prices of locked tokens in subsequent auctions, highlighting the significance of strategic investment opportunities within the crypto space.
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