FTX’s administrators have sold a significant portion of its Solana (SOL) assets, fetching nearly $1.9 billion. This transaction saw between 25 million and 30 million SOL tokens, part of a larger $2.6 billion cache, being sold at a 60% discount, for $64 each.
The sale’s timing is critical, considering SOL’s current market price hovered around $172. It indicates a hefty concession but promising a potentially lucrative return for the buyers.
30 Million Solana (SOL) Tokens Sold
The sale attracted notable firms from Galaxy Trading to Pantera Capital. Therefore, it showcased the deep interest and potential confidence in Solana’s future. This strategic divestment is part of FTX’s dissolution process, initiated after its infamous collapse in November 2022.
The deal’s scale and the significant discount highlight the risk appetite of institutional investors in a market known for its volatility. Solana, in particular, has experienced dramatic price swings, dropping by as much as 97% in past bear markets.
Observers like Eva Weng, from Caladan, remarked on the unique nature of the transaction. She pointed out that investors are essentially trading immediate liquidity for the chance to buy at significantly reduced prices, with a four-year lock-up period on their capital.
“Basically you’re exchanging time for a discount — you have to lock up your capital for four years, but you get to pay much less for the tokens,” Weng said.
Read more: 6 Best Platforms To Buy Solana (SOL) in 2024
The narrative around Solana, and its significant role in FTX’s asset portfolio, has been further complicated by the legal troubles of FTX co-founder Sam Bankman-Fried. His heavy investment in Solana turned sour as FTX collapsed, leading to his conviction and a 25-year prison sentence.
This backdrop adds a layer of intrigue to the sale, as Solana was among the most affected by FTX’s collapse.
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