- FTX repaid $28 million in SOL.
- FTX still owns $1.1 billion in Solana.
- Investors fear market instability.
The FTX bankruptcy continues to shake up the cryptocurrency market. High-performance blockchains have been most impacted by Solana’s participation in the exchange. Immediately after the collapse, SOL plummeted to multi-year lows, reaching single digits.
Despite Solana’s recovery, the FTX crisis is still rattling investors. Recently, FTX withdrew an additional $28 million from the network. This is part of the liquidation of FTX’s $1.1 billion Solana assets.
FTX continues liquidation of Solana
Bankrupt exchange FTX is slowly liquidating its Solana holdings. On Tuesday, October 15, FTX continued its monthly withdrawals by repaying 178,631 SOL worth $28 million. These withdrawals followed a court ruling ordering the exchange to gradually liquidate all of its assets to repay creditors.
Liquidated Solana will be used to repay $16 billion in debt from creditors and users. Although these withdrawals were already scheduled, a large-scale move to centralized exchanges could raise concerns among investors.
Nonetheless, FTX has taken steps to ensure that it does not have a significant impact on Solana prices. Previously, FTX sold 30 million SOL to venture capital firms such as Pantera Capital and Galaxy. These tokens were offered at a high discount, but also came with a vesting schedule to prevent the price of SOL from skyrocketing.
How FTX’s SOL Sales Impact the Market
FTX decided to sell its SOL tokens to venture firms to prevent the price from falling. By locking these tokens during the vesting period, exchanges hope to prevent their value from falling. That is, at least before the exchange sold nearly $1.1 billion worth of SOL.
SOL’s controlled selling ensures that too much selling pressure does not occur directly. However, these tokens will eventually hit the market, harming Solana’s long-term prospects.
On the flip side
- Solana has fallen $10 or less In the aftermath of the FTX bankruptcy.
- FTX was one of the largest validators on the Solana network. The bankruptcy took Solana’s entire network offline.
Why This Matters
FTX’s ongoing liquidation will greatly test Solana’s robustness against massive market pressure.
Learn more about Solana’s FTX sale:
FTX discounted Solana by 62% and made $2 billion.
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