FTX Solana Auction Prepares To Take Place After $300 Million Sale In March

Key Points:

• The bankruptcy estate of FTX plans to auction off another batch of Solana tokens this week, following previous sales totaling over $300 million in March.
• Likely bidders, including Figure Markets, Pantera Capital, and Abra, are gearing up to participate in the FTX Solana auction.

According to Bloomberg, the bankruptcy estate of the defunct FTX cryptocurrency exchange is set to auction off another batch of Solana tokens this week.

Key Players Prepare for the FTX Solana Auction

The FTX Solana auction, conducted via “blind auction,” is scheduled with a Wednesday deadline, and the results will be revealed on Thursday. This move follows FTX’s recent disclosure of selling approximately $307.6 million worth of SOL and ZBC tokens in March, with April’s sales yet to be disclosed.

These auctions arise from the fallout of Sam Bankman-Fried‘s FTX in November 2022, providing buyers with opportunities amidst Solana‘s volatile price swings. Likely bidders include Figure Markets, Pantera Capital, and Abra, all gearing up to seize potential windfalls from the tokens.

Pantera, which secured a portion of the earlier sale, is reportedly preparing to participate in the upcoming FTX Solana auction, weighing options to bid independently or through a Special Purpose Vehicle (SPV).

Strategic Shift in Auction Dynamics Signals Market Changes

Previously, FTX offloaded around two-thirds of its $2.6 billion Solana token stash at a discount, priced at over $60 each, when SOL was trading at approximately $172. This time, the token’s price is anticipated to rise, indicating a strategic shift in auction dynamics.

Earlier, FTX Solana auctions involved fixed-price sales, with buyers agreeing to lock their SOL for four years at a 60% discount from the market price then. Despite this trade-off, locked Solana tokens, constituting a significant portion of FTX’s holdings at its collapse, continue to attract strong interest from buyers willing to accept the risk for discounted rates.