FTX Announces Auction To Sell Remaining Locked Solana Tokens

Amidst the FTX bankruptcy proceedings, the exchange is preparing to auction off its remaining locked Solana (SOL) tokens rather than selling them at a fixed price. The sale date and details are yet to be announced. Notably, FTX has already sold around two-thirds of its 41 million locked tokens to industry players like Galaxy Digital and Pantera for approximately $2.6 billion, with an average price of $60 per token.

FTX Announces Auction of Remaining Locked Solana (SOL) Tokens

New York, USA - The embattled crypto exchange FTX has announced plans to auction the remaining locked Solana (SOL) tokens it holds in its custody. This decision marks a departure from the exchange's previous strategy of selling the tokens at a fixed price.

FTX's bankruptcy administrators have successfully sold approximately two-thirds of the 41 million locked SOL tokens to industry heavyweights, including Galaxy Digital and Pantera. These transactions have generated approximately $2.6 billion for FTX, with tokens selling for an average price of $60 each.

Neptune Digital led the initial purchase, acquiring 26,964 SOL tokens for $64 per token, totaling $1.7 million. Mike Novogratz's investment firm subsequently established a dedicated $620 million fund to buy SOL from FTX. Pantera Capital also announced its intention to raise $250 million to participate in the acquisition.

In September 2022, the court authorized FTX to liquidate its remaining crypto assets to raise additional funds and compensate investors impacted by the exchange's collapse. Sam Bankman-Fried's embattled company chose Galaxy Asset Management as its custodian for the asset sale plan, aiming to reduce expenses and enhance transaction efficiency.

According to court filings submitted to the United States Bankruptcy Court on September 11, FTX held a total of $3.4 billion in "Tier 1" cryptocurrencies as of August 31, 2023. Tier 1 cryptocurrencies are defined by the exchange as having high liquidity.

The Tier 1 cryptocurrency holdings include:

• $1.162 billion in Solana (SOL)
• $560 million in Bitcoin (BTC)
• $192 million in Ethereum (ETH)
• $137 million in Aptos (APT)
• $120 million in Tether (USDT)
• $119 million in XRP (XRP)
• $49 million in BitDAO (BIT)
• $46 million in Stargate (STG)
• $41 million in Wrapped Bitcoin (WBTC)
• $37 million in Wrapped Ethereum (WETH)

FTX also possesses approximately $900 million in "Tier 2" tokens, which are defined as having lower liquidity. Notable Tier 2 tokens include Serum (SRM), Blur (BLUR), Polkastarter (POLS), Maps.me (MAPS), Oxygen (OXY), and Bonfida (FIDA).

The specifics of the upcoming SOL token auction remain undisclosed. However, the court filing indicates that FTX plans to finalize the auction process by the end of the year.