FTX Estate to Hold Auction for Locked Solana Tokens

FTX's locked Solana tokens will be auctioned rather than sold at a fixed price. The estate's second major sale of Solana follows a successful $1.9 billion sale to Galaxy Digital and Pantera. Buyers are eager to purchase the locked tokens at a discount, despite their delayed sale dates. Figure CEO Mike Cagney confirmed the auction plan, with further details yet to be announced. The decision to acquire the tokens at a previous sale has proven profitable, with Solana's price significantly higher than the purchase price.

FTX Estate to Auction Locked Solana Tokens

New York, March 8, 2023 - The FTX estate has announced that its next sale of locked Solana (SOL) tokens will be conducted as an auction rather than a set-price sale. This follows the estate's recent successful sale of $1.9 billion worth of SOL tokens to industry firms Galaxy Digital and Pantera.

The details of the upcoming auction have yet to be disclosed. However, according to Figure CEO Mike Cagney, the locked SOL tokens, which constituted a significant portion of FTX's digital asset holdings at the time of its collapse, have attracted substantial interest from potential buyers.

These buyers are willing to take on the risk associated with purchasing SOL tokens at a discounted rate with the understanding that they cannot be sold until a predetermined future date. The last sale of approximately two-thirds of FTX's SOL hoard generated $2.6 billion for the estate at a price of around $60 per token.

With SOL's current market price hovering near $150, the decision to acquire these tokens at a discount appears prudent. However, the volatile nature of cryptocurrencies means that the token's price could fluctuate significantly before it is unlocked and available for sale.

Despite the inherent risks, there remains strong interest in the locked tokens. Figure Markets, led by Cagney, plans to establish a Special Purpose Vehicle (SPV) to allow non-US and accredited US investors to participate in the auction. This move has been praised by prominent creditor Sunil Kavuri.

The auction of the locked SOL tokens is expected to further contribute to the estate's ongoing efforts to recover as much value as possible for creditors. The estate is exploring various avenues to maximize its assets, including the sale of other digital assets and the potential recovery of funds from FTX's former executives.

The auction process is expected to provide interested buyers with an opportunity to acquire valuable SOL tokens at potentially favorable prices. However, it is important to note that the cryptocurrency market remains subject to significant volatility, and potential investors should exercise due diligence before making any decisions.