It seems like FTX’s bankruptcy administrators’ latest move had added more weight to the selling pressure for Solana (SOL). The latest reports depict that the executives have sold a major portion of a $2.6 billion stash of Sol tokens at a discounted price.
FTX dumps Solana
As per the reports, this massive move comes with increasing interest from industry players such as Galaxy Trading and Pantera Capital. It stems from the FTX’s collapse in November 2022. However, the offloading marks a big move in the crypto industry due to its scale and scope. It has the potential to turn investors’ turn around from crypto for a while.
It mentioned that between 25 million and 30 million locked-up SOL coins were sold at a discounted price of $64 each. This sale helped the FTX estate to raise up to $1.9 billion. Data shows that Solana was trading at around $172 on Friday and this indicates an amount of discount offered from the market price.
This also shows how buyers of the discounted tokens are taking on risk over the SOL’s volatility. Its price has dropped by 7% in the last 7 days while it is still up by almost 80% in the last 90 days. Solana is trading at an average price of $176.87, at the press time. Its 24 hour trading volume is up by 60% $5.8 billion with a market cap of $78.7 billion.
It is important to note that Galaxy Trading reportedly had raised around $620 million for a fund. This amount might be fully dedicated to purchasing SOL from the FTX estate. It added that investors in the fund will pay a 1% management fee. However, this will allow them to earn yield through staking.
What happened?
Earlier reports emerged that the collapsed FTX halted the SOL sale process in March. This was due to high buyer interest but didn’t disclose the number of tokens sold or at what price.
Meanwhile, the Solana network is facing challenges in coping and this might be linked to the increased demand for meme coins. This has led to a drop in successful transaction rates.
Data from Dune Analytics shows that over 70% of transactions on Solana have failed, the highest failure rate to date. This strain on the network underscores the need for scalability and infrastructure improvements. It will support growing demand and ensure a smoother user experience.
