11.2 million Solana (SOL) valued at $2.06 billion will be unlocked from FTX’s bankruptcy auction.
- FTX’s past sales: 41 million SOL previously sold to institutional investors like Galaxy Digital, Pantera Capital, and Figure.
- The release is part of the bankruptcy asset liquidation plan following FTX’s collapse.
What’s the significance: The unlock could introduce selling pressure, affecting SOL’s price volatility and liquidity.
Why Is This Being Unlocked?
Following the collapse of FTX, its holdings—including 41 million SOL—were liquidated in multiple auctions. The upcoming unlock of 11.2 million SOL is part of these scheduled releases under the bankruptcy asset liquidation plan.
Major Buyers and Their Role
These institutional investors acquired SOL through FTX’s bankruptcy auctions and OTC transactions, avoiding direct market impact:
- Galaxy Digital – A top crypto and blockchain investment firm.
- Pantera Capital – A digital asset investment fund with strong exposure to crypto.
- Figure – A fintech platform utilizing blockchain technology for financial services.
FTX’s Total SOL Holdings
In a court filing last year, FTX disclosed that its liquid crypto portfolio is worth $3.4 billion, including $1.16 billion worth of SOL.
The numbers:
- 41M SOL already sold in previous auctions.
- 11.2M SOL set for unlocking on March 1.
- $2.06B total value of this tranche.
- Past purchase prices: $64, $95, and $102 per SOL.
SOL’s Current Market Standing
As of writing, Solana is valued at $166.74 (₱9,685), down 0.1% in the last 24 hours. The price movement post-unlock depends on whether institutional holders decide to sell or hold.
Market Impact: Will SOL’s Price Drop?
- If investors sell SOL: Increased supply could push prices lower.
- If they hold SOL: The impact on price may be limited.
- Solana’s network growth: Continued adoption and ecosystem expansion could counterbalance selling pressure.
What to watch
Market participants could monitor whether institutional holders sell or hold as potential buying opportunities may arise if SOL’s price dips.
Recent news on Solana:
- LIBRA – The recent $LIBRA meme coin scandal, involving insider trading and liquidity manipulation, led to a 12% drop in SOL price, with Solana-based DeFi and meme tokens suffering 10-40% losses, raising concerns about the ecosystem’s stability.
- TRUMP Meme coin – In January, the launch of a Trump-themed meme coin on Solana drove SOL to an all-time high of $270.67, surging 9% amid $3 billion in trading volume, while XRP and ETH declined due to shifting sentiment.
- Potential Crypto Reserve – SOL surged 8% to $217 alongside XRP’s climb to $3.35 amid reports that Trump may support an “America-first strategic crypto reserve” including SOL, XRP, and USDC, though experts remain skeptical of government-backed altcoin investments.
Worth reading: Last year, during the Devcon Southeast Asia 2024 in Thailand, Ethereum leaders acknowledge Solana as competition but view it as a driving force for innovation, emphasizing Ethereum’s broader scale and rollup-centric roadmap, while also recognizing that the true competition lies in centralized systems like SEPA, credit cards, and emerging payment networks.
This article is published on BitPinas: 11.2M Solana (SOL) Worth $2.06B to Unlock from FTX Bankruptcy Auction – Market Impact Explained
What else is happening in Crypto Philippines and beyond?
