1 year ago
The terms of Solana (SOL) has plunged much than 6% the past 24 hours, amid fears that bankrupt crypto speech FTX whitethorn soon liquidate its important portions of the token and different Solana-affiliated crypto assets.
The terms of Solana has fallen 6% to $18.38 successful the past 24 hours. Source: CoinGeckoAccording to a operation of information from Solscan, which has added up the worth of the 3 publically disposable FTX acold retention wallets, the FTX property holds a combined $1.5 cardinal successful crypto assets connected the Solana network.
Of that weighty figure, Solana tokens relationship for conscionable $128 million.
The remainder of the magnitude is comprised of galore Solana-based altcoins specified arsenic Wrapped Bitcoin (WBTC), Maps token (MAPS), Serum (SRM) and a fig of different tokens colloquially referred to arsenic “Sam coins” — a jest astatine the erstwhile FTX CEO Sam Bankman-Fried.
The full sum of Solana-based tokens connected FTX Cold Storage #1 wallet. Source: SolscanStill, the thought that liquidators whitethorn soon unleash $128 cardinal worthy of SOL and hundreds of millions worthy of different SOL-affiliated tokens onto the marketplace hasn’t inspired overmuch assurance successful the market.
A fig of users took to X (formerly known arsenic Twitter) to dependable their concerns implicit the impending sell-off. “FTX astir to dump $680 mil worthy of SOL 👀” wrote 1 user. “SOL is going to dump hard aft FTX sells its bag, going to scope 14$ soon,” said another.
Others person alternatively urged calm, arsenic the bankruptcy program really restricts however overmuch tin beryllium sold disconnected astatine once
According to FTX bankruptcy filings, the projected program for the liquidation of FTX’s assets imposes a bid of conditions connected the merchantability of tokens.
On Aug. 24, FTX projected to name Mike Novogratz’s Galaxy Digital Capital Management arsenic the concern manager that would oversee the income of its recovered crypto holdings.
In this plan, the FTX property would lone beryllium permitted to merchantability a maximum of $100 cardinal worthy of its tokens each week, however, that bounds could beryllium raised to $200 cardinal connected an idiosyncratic token basis.
These limits person been introduced successful a bid to minimize the interaction of token income connected the broader marketplace portion inactive allowing for FTX to marque creditors whole.
The FTX illness and consequently biggest achromatic swan Solana ever endured enactment SOL astatine $8
And we're disquieted astir ~$600M that volition beryllium sold implicit the people of the adjacent 5 years?
Some Major L1s person higher ostentation than this and nary 1 cares.
Notably, the program has not yet been signed disconnected connected by the courts, however, the program and a fig of different matters related to the FTX token income are expected to travel earlier the Delaware Bankruptcy Court connected Sept. 13.
Related: FTX wallet shifts $10M successful crypto, sparking fearfulness of token dumps to come
In an April 12 hearing, FTX disclosed that it had recovered astir $7.3 billion successful liquid assets, with $4.8 cardinal of that sum being comprised of assets recovered arsenic of November 2022.
Overall however, according to documents raised successful the hearing, FTX held a full of $4.3 cardinal successful crypto assets disposable for stakeholder betterment astatine marketplace prices arsenic of April 12.
FTX assets disposable for stakeholder betterment arsenic of April 12. Source: Sullivan and CromwellAt the clip of publication, Solana is changing hands for $18.38 apiece, down astir 11% for the week.
Collect this nonfiction arsenic an NFT to sphere this infinitesimal successful past and amusement your enactment for autarkic journalism successful the crypto space.
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