Administrators of the bankrupt FTX platform have sold a significant portion of its Solana (SOL) holdings for nearly $1.9 billion. As part of this transaction, between 25 and 30 million SOL tokens, out of larger funds worth $2.6 billion, were sold at a massive 60% discount, priced at $64 each.
The timing of this sale proves critical, considering the current price of the altcoin SOL hovering around $172. This indicates a significant concession but promises potentially lucrative returns for buyers.
30 million Solana (SOL) sold
This token sale has attracted renowned firms from Galaxy Trading to Pantera Capital, demonstrating deep interest and potential confidence in the future of Solana and its network. This strategic divestment is part of the gradual dissolution process of FTX, initiated after its tragic collapse in November 2022.
The scale of this operation and the substantial discount of the asset thus underline institutional investors’ appetite for risk in a market known for its volatility. Solana’s price, in particular, has seen quite dramatic price fluctuations, dropping as much as -97% during previous bear markets.
Market observers like Eva Weng from Caladan have notably highlighted the unique nature of this massive transaction. Ms. Weng pointed out that investors are essentially trading immediate liquidity for the opportunity to buy SOL at significantly reduced prices, with a four-year lock-up period on their capital.
“In fact, you are trading time for a discount – you have to lock up your capital for four years, but you are paying for the tokens much cheaper,” said Ms. Weng.
The narrative surrounding Solana, and its significant role in FTX’s asset portfolio, has been further complicated by legal issues involving the exchange’s co-founder, Sam Bankman-Fried. His substantial investment in Solana turned sour during FTX’s downfall, resulting in a 25-year prison sentence.
This complex backdrop adds an intriguing layer to the sale as Solana was one of the companies most affected by FTX’s collapse.
