- FTX redeems $28M in SOL.
- FTX still holds $1.1 billion in Solana.
- Investors fear market instability.
The FTX bankruptcy continues to shake up the crypto markets. Due to the exchange’s involvement with Solana , the high-performance blockchain was the most impacted. Immediately after the collapse, SOL spiraled to multi-year lows, reaching single digits.
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Despite Solana’s recovery, the FTX debacle is still shaking up investors. Recently, FTX withdrew an additional $28 million from its network. This is a part of the ongoing liquidation of FTX’s $1.1 billion Solana holdings.
FTX Continues Solana Liquidations
Bankrupt exchange FTX is slowly liquidating its Solana holdings. On Tuesday, October 15, FTX redeemed 178,631 SOL, valued at $28 million , continuing its monthly withdrawals. These withdrawals come after a court ruling mandating that the exchange gradually liquidate all of its assets to repay creditors.
Source: SolScan
The liquidated Solana will go toward covering the $16 billion debt to creditors and users. While these withdrawals were already scheduled, large moves to centralized exchanges can cause concerns among investors.
Still, FTX took steps to prevent a significant impact on Solana’s price. Earlier, FTX sold 30 million SOL to venture capital firms like Pantera Capital and Galaxy. These tokens came at a high discount, but also with a vesting schedule, to prevent tanking SOL’s price.
Market Impact of FTX’s Sales of SOL
FTX opted to sell its SOL tokens to venture firms to prevent taking its price. By locking up these tokens in a vesting period, the exchange hopes to prevent crashing its value. That is, at least before the exchange sells its almost $1.1 billion worth of SOL.
The control sales of SOL will ensure that too much selling pressure doesn’t happen directly. However, these tokens will eventually hit the markets, hurting Solana’s long-term prospects.
On the Flipside
- Solana collapsed below $10 in the aftermath of the FTX bankruptcy.
- FTX was one of the largest validators on the Solana Network. Its bankruptcy caused network-wide outages for Solana.
Why This Matters
The ongoing liquidation by FTX will significantly test Solana’s robustness in the face of large-scale market pressures.
Read more about Solana’s FTX sales:
FTX Dumps Solana for a Massive 62% Discount, Still Bags $2B
Read more about MrBeast’s latest allegations:
MrBeast Accused of Making $10M From Crypto Pump-and-Dumps
