Massive Liquidation: FTX Unloads $1.9 Billion Solana Tokens, What Next For SOL Price
The post Massive Liquidation: FTX Unloads $1.9 Billion Solana Tokens, What Next For SOL Price appeared first on Coinpedia Fintech News
According to the Bloomberg report, the recent massive liquidation of Solana by the FTX estate has turned the crypto market upside down. FTX, the bankrupt exchange, unloaded over half of its SOL tokens at a 63% discount from current market prices, resulting in nearly $2 billion for FTX creditors.
FTX’s $1.9B SOL Sale Sparks Creditor Outrage
Galaxy Trading, Pantera Capital, and Neptune Digital Assets acquired the majority of FTX’s stake in SOL, indicating strong interest from asset managers and venture capitalists. Galaxy Trading raised $620M for SOL tokens from FTX. Pantera Capital raised $250M. Neptune Digital Assets bought 26,964 SOL tokens at $64 each.
FTX’s sale of between 25 million and 30 million locked-up SOL coins at $64 per token has raised concerns among creditors, especially considering SOL’s current trading price of $176. Critics have accused FTX’s liquidators of violating creditors’ property rights, particularly regarding the significant discounts at which the assets were sold.
Since FTX sold a large portion of its SOL tokens for $1.9 billion, but they’ll be locked for four years. The company claims this move is to repay creditors, but it’s received negative feedback from those affected by the exchange’s collapse. Sunil Kavuri, a victim of the collapse, criticized the sale, stating it “destroyed billions of value for FTX creditors.”
Crypto Transfers from FTX and Alameda to Exchanges
Recent on-chain data reveals significant cryptocurrency transfers from addresses associated with FTX and Alameda to centralized exchanges, totaling approximately $15 million. These transactions include notable transfers such as 1,000 ETH to Coinbase, 1,000 Wrapped Ether (WETH) to Wintermute, and 3,544 Wrapped Binance Coin (WBNB) to Binance.
During the same period, addresses linked to the failed exchange moved around $105.9 million worth of 19 different altcoins to intermediary wallets, followed by approximately $16 million in 13 different assets deposited to centralized exchanges. The dominant transactions involved GateChain’s 3.17 million GT tokens, valued at about $31.3 million, alongside significant transfers of LEO and VIC tokens, among others.
Furthermore, the former CEO of FTX, Sam Bankman-Fried, was recently sentenced to 25 years in prison on fraud charges related to the exchange’s collapse in November 2022. Creditors have filed a class action against Sullivan and Cromwell, alleging their involvement in the fraud before representing FTX during bankruptcy proceedings.
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Massive Liquidation: FTX Unloads $1.9 Billion Solana Tokens, What Next For SOL Price
The post Massive Liquidation: FTX Unloads $1.9 Billion Solana Tokens, What Next For SOL Price appeared first on Coinpedia Fintech News
According to the Bloomberg report, the recent massive liquidation of Solana by the FTX estate has turned the crypto market upside down. FTX, the bankrupt exchange, unloaded over half of its SOL tokens at a 63% discount from current market prices, resulting in nearly $2 billion for FTX creditors.
FTX’s $1.9B SOL Sale Sparks Creditor Outrage
Galaxy Trading, Pantera Capital, and Neptune Digital Assets acquired the majority of FTX’s stake in SOL, indicating strong interest from asset managers and venture capitalists. Galaxy Trading raised $620M for SOL tokens from FTX. Pantera Capital raised $250M. Neptune Digital Assets bought 26,964 SOL tokens at $64 each.
FTX’s sale of between 25 million and 30 million locked-up SOL coins at $64 per token has raised concerns among creditors, especially considering SOL’s current trading price of $176. Critics have accused FTX’s liquidators of violating creditors’ property rights, particularly regarding the significant discounts at which the assets were sold.
Since FTX sold a large portion of its SOL tokens for $1.9 billion, but they’ll be locked for four years. The company claims this move is to repay creditors, but it’s received negative feedback from those affected by the exchange’s collapse. Sunil Kavuri, a victim of the collapse, criticized the sale, stating it “destroyed billions of value for FTX creditors.”
Crypto Transfers from FTX and Alameda to Exchanges
Recent on-chain data reveals significant cryptocurrency transfers from addresses associated with FTX and Alameda to centralized exchanges, totaling approximately $15 million. These transactions include notable transfers such as 1,000 ETH to Coinbase, 1,000 Wrapped Ether (WETH) to Wintermute, and 3,544 Wrapped Binance Coin (WBNB) to Binance.
During the same period, addresses linked to the failed exchange moved around $105.9 million worth of 19 different altcoins to intermediary wallets, followed by approximately $16 million in 13 different assets deposited to centralized exchanges. The dominant transactions involved GateChain’s 3.17 million GT tokens, valued at about $31.3 million, alongside significant transfers of LEO and VIC tokens, among others.
Furthermore, the former CEO of FTX, Sam Bankman-Fried, was recently sentenced to 25 years in prison on fraud charges related to the exchange’s collapse in November 2022. Creditors have filed a class action against Sullivan and Cromwell, alleging their involvement in the fraud before representing FTX during bankruptcy proceedings.
Read More