Key Points:
Among the buyers are industry heavyweights, including Galaxy Trading and Pantera Capital. This sale represents approximately two-thirds of FTX’s $2.6 billion hoard of Solana, which was locked up.
The deal, stemming from FTX‘s tumultuous unraveling in November 2022, is unprecedented in scale and scope within the crypto industry. Buyers are taking a significant risk on a volatile token that has seen drastic fluctuations, sinking as much as 97% in previous bear markets.
Galaxy Trading, a unit of Galaxy Digital led by Mike Novogratz, raised about $620 million for a fund dedicated to purchasing SOL from the FTX estate. The tokens, locked according to a pre-agreed vesting period, will gradually become available for sale over four years.
FTX’s co-founder, Sam Bankman-Fried, a convicted fraudster currently awaiting sentencing, was a significant supporter of SOL. The token, running on the Solana blockchain, formed a substantial part of the digital assets held by FTX when it collapsed, sending shockwaves through crypto markets.
The FTX bankruptcy estate spokesperson emphasized their commitment to maximizing value for creditors and returning as much cash as possible to customers of the failed platform. The estate remains focused on strategic liquidation of assets as it progresses towards distributing funds to stakeholders.
Despite the sale attracting some of crypto’s biggest names, including Pantera, FTX creditors have alleged being shortchanged in the process. The judge overseeing the insolvency case ruled in January that the size of each claim should be based on what was owed on the day FTX filed for bankruptcy when SOL traded at a fraction of its current value.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Zug, Switzerland, May 21st, 2024, ChainwireCardinal Cryptography, core developer of the zero-knowledge, privacy-focused blockchain Aleph…
If you're looking for lazy ways to make money online, here are seven passive income…
Arbitrum has announced an exciting development for the decentralized social network Farcaster, which now supports…
Binance Labs has revealed its latest strategic investment in Aevo, a decentralized derivatives trading platform.
Fox Business News reporter highlights urgent Ethereum ETF 19b-4 filing updates amid crypto market scrutiny.
Vitalik Buteri recently expressed on X that he was deeply concerned with the rapid development…
This website uses cookies.