Solana to Unlock Over $1.5 Billion in SOL for FTX Estate
Solana Set to release 11.2 million sol Today’s tokens are worth about $1.57 billion. This unlock is part of the ongoing bankruptcy process for the discontinued FTX exchange.
It is worth noting that with increasing legal fees, FTX bankruptcy has become one of the most expensive cases in Chapter 11 in U.S. history.
FTX bankruptcy estate’s huge Sorana token unlocks
Data on the chain shows that unlocked SOLs account for about 2.2% of Solana’s circular supply, currently at 488 million tokens.
Still, FTX Estate has two more smaller SOL unlocks in the coming months. On April 1, 12,700 SOL will be released, followed by 73,700 SOL on May 1.
These tokens are part of the FTX holding, Sold at a discount to investors at previous auctions.
Leading creditor advocate Sunil Kavuri revealed that FTX has liquidated 41 million locked SOLs in three auctions. According to him, the buyer includes Crypto investment firms like Galaxy Digital and Pantera Capital.
Indeed, Galaxy Digital, the largest buyer, locked 25.5 million locked SOLs to $64 per token, well below the current market price of $144.
Pantera and other companies buy it for about $95. Meanwhile, Figure and its partners acquired SOL for $102.
Defiance Capital founder Arthur Cheong confirmed his involvement in the over-the-counter (OTC) sale of Galaxy Capital. He said he bought the undisclosed SOL for $64 per token. Cheong also mentioned that he had no plans to sell, as he expected a substantial price increase.
“I participated in the $64 SOL OTC deal through Galaxy and received bullet unlock today. Not selling one of them. I think it will be much higher in 3 months,” Cheong statement.
Meanwhile, releasing SOL tokens has raised concerns about potential sales pressure. A large number of new tokens may increase supply and drive prices downward.
In the past week, Solana’s price has fallen for four months In the wider cryptocurrency market, it fell to about $136. However, the value of the digital asset has since As of press time, it rebounded to $140.
In addition, this development is because FTX’s bankruptcy proceedings have entered a critical stage, The initial creditor allocation is in progress.
However, the legal fees associated with the case reached almost $1 billion, positioning it in the most expensive Chapter 11 document in U.S. history.
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