Over the final weekend, the Solana (SOL) price got here below main promoting stress with its value slipping below $18.50 ranges just lately. This is as a result of Solana buyers have turned anxious that crypto buyers might dump their Solana holdings after the FTX listening to in Delaware Bankruptcy Court on Wednesday, September 13.
Reportedly, FTX is looking for approval for its liquidation of $3.4 billion in SOL, FTT, BTC, ETH, and different crypto asset holdings. Crypto alternate FTX held Solana as a significant a part of its reserves. However, they offered SOL in large portions when the alternate crashed final yr in November 2022.
Of the complete $3.04 billion in crypto property held by FTX, Solana constitutes the lion’s share. As of January 17, FTX’s cryptocurrency holdings had been estimated to consist of roughly $685 million in Solana (SOL) tokens, $529 million in FTT tokens, $268 million in Bitcoin (BTC), $90 million in Ethereum (ETH), together with a spread of different property, together with Aptos, Dogecoin, Polygon, XRP, and numerous stablecoins.
Will FTX Really Sell Solana Holdings?
However, many individuals appear to have missed a big detail. The SOL tokens held by FTX debtors aren’t instantly obtainable on the market. In distinction to the impression conveyed by the shared visible knowledge, these SOL tokens are topic to a lockup settlement. FTX, along with Alameda, had beforehand obtained 16% of the SOL provide immediately from the Solana Foundation.
This acquisition got here with sure circumstances, primarily a lockup schedule. The present holding of 47.51 million SOL, which represents 8.82% of Solana’s eventual complete provide, is certain by this settlement.
Hence, the false impression that this SOL reserve is quickly tradable and poised for a market sell-off is essentially incorrect. The truth is that these tokens are locked and can comply with a linear vesting course of spanning from 2025 to 2028.
According to the phrases of the settlement, the SOL tokens will expertise gradual month-to-month releases till January 2028. Furthermore, particular tranches, resembling the 7.5 million SOL acquired from Solana Labs by Alameda Research, will solely change into accessible on March 1, 2025. Another tranche of 61,853 SOL is ready for unlocking on May 17, 2025.
Thus, there’s little purpose for buyers to panic amid all the FUD round Solana at this level.
The offered content material might embody the private opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty to your private monetary loss.
