Solana Investors Fear Dumping of SOL Holdings After FTX Hearing
The Solana (SOL) price has faced selling pressure recently, dropping below $18.50. This is due to concerns among Solana investors that crypto investors may sell off their Solana holdings following the FTX hearing in Delaware Bankruptcy Court on September 13.
FTX is seeking approval for the liquidation of $3.4 billion in assets, including SOL, FTT, BTC, ETH, and other cryptocurrencies. FTX held a significant amount of Solana as part of its reserves, but sold large quantities of SOL when the exchange crashed in November 2022.
However, it is important to note that the SOL tokens held by FTX debtors are not immediately available for sale. They are subject to a lockup agreement, with a linear vesting process that will continue until January 2028. Investors should not panic amidst the fear, as the SOL reserve is not poised for a market sell-off at this time.
Hot Take: No Need to Panic Over Solana Holdings
Despite concerns surrounding the FTX hearing and potential sell-off of Solana holdings, the SOL tokens held by FTX debtors are locked and subject to a vesting process until 2028. This means that these tokens are not immediately available for sale. Investors should not panic and instead understand that the fear surrounding Solana is based on a misconception. The gradual release of SOL tokens over the next few years indicates that there is no immediate threat of a market sell-off. Therefore, it is important to stay informed and not get swayed by FUD (Fear, Uncertainty, and Doubt) in the crypto market.
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