The FTX Situation
If you follow cryptocurrency news, you might have heard that the bankrupt crypto exchange FTX recently transferred 250,000 Solana tokens (SOL) worth $10.83 million to Binance. This news has raised concerns and speculations about potential price manipulation of Solana.
FTX Executes Full-Fledged Offloading of Solana
According to on-chain insights platform Spot On Chain, FTX has deposited 250,000 SOL tokens to Binance at a price of $43.32. While this doesn’t necessarily mean that the tokens will be sold immediately, it is often the primary purpose of transferring assets to centralized exchanges.
Spot on Chain reports that FTX has so far sent approximately $223 million worth of SOL to various centralized exchanges, leaving them with 1.25 million Solana tokens valued at $54.5 million.
Chances of Price Manipulation?
The movement of FTX’s assets coinciding with a rally in SOL’s price has led to speculation about potential price manipulations. Neel Kukreti, a renowned trader, believes that these concerns are valid and not to be neglected.
Kukreti also points out that several other holdings of FTX have outperformed the market since mid-October, raising further suspicions about potential market manipulation.
Hot Take: What This Means for the Market
While it’s unclear whether the recent rally in SOL’s price was influenced by price manipulation, the proximity of this rally to FTX’s potential selling activities does raise legitimate concerns about market integrity and stability.
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