During the last weekend, the Solana (SOL) value got here underneath main promoting strain with its value slipping underneath $18.50 ranges just lately. It is because Solana traders have turned anxious that crypto traders might dump their Solana holdings after the FTX listening to in Delaware Chapter Court docket 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 trade FTX held Solana as a serious a part of its reserves. Nevertheless, they bought SOL in enormous portions when the trade crashed final 12 months in November 2022.
Of the full $3.04 billion in crypto belongings 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 belongings, together with Aptos, Dogecoin, Polygon, XRP, and varied stablecoins.
Will FTX Actually Promote Solana Holdings?
Nevertheless, many individuals appear to have ignored a big detail. The SOL tokens held by FTX debtors aren’t instantly accessible 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 side Alameda, had beforehand obtained 16% of the SOL provide instantly from the Solana Basis.
This acquisition got here with sure situations, primarily a lockup schedule. The present holding of 47.51 million SOL, which represents 8.82% of Solana’s eventual whole provide, is sure by this settlement.
Therefore, the misperception that this SOL reserve is instantly tradable and poised for a market sell-off is essentially incorrect. The actual fact is that these tokens are locked and can observe a linear vesting course of spanning from 2025 to 2028.
In accordance with the phrases of the settlement, the SOL tokens will expertise gradual month-to-month releases till January 2028. Moreover, particular tranches, such because the 7.5 million SOL acquired from Solana Labs by Alameda Analysis, will solely turn out to be accessible on March 1, 2025. One other tranche of 61,853 SOL is ready for unlocking on Might 17, 2025.
Thus, there’s little motive for traders to panic amid all of the FUD round Solana at this level.
The introduced content material might embody the non-public 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 in your private monetary loss.
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