FTX Sells Off Solana Assets at a Discount, Sparking Market Watch
FTX offloads Solana at big discount, raising $1.9B amid creditor repayment efforts
After its bankruptcy, FTX sold a significant portion of its Solana (SOL) holdings at a discount, according to Bloomberg.
The court-approved sale was to help FTX pay off creditors, raising concerns among SOL investors about the potential market impact.
The exchange offloaded these tokens below their market value.
Bloomberg reported that FTX raised about $1.9 billion by selling 30 million SOL tokens to notable investors, including Galaxy Trading and Pantera Capital, at a steep markdown from their market price, valuing them much lower than their actual worth.
To stabilize the market, the sold SOL tokens are locked until January 2028, with FTX retaining 21 million SOL tokens, now valued at approximately $3.75 billion.
Despite the negative impact of FTX's 2022 collapse, which followed the imprisonment of its CEO Sam Bankman-Fried, Solana experienced a significant recovery.
This resurgence, fueled by the success of meme coins and competition with Ethereum, has been marked by a 332% increase in DEX trading volume and a 97% rise in market cap in the last quarter, indicating Solana's growing prominence in the crypto ecosystem.
