11.2M Solana (SOL) Worth $2.06B to Unlock from FTX Bankruptcy Auction – Market Impact Explained

The unlock could introduce selling pressure, affecting SOL's price volatility and liquidity.

Highlight: Over 11.2 million Solana (SOL) tokens, currently valued at around $2.06 billion, are set to be unlocked from the FTX bankruptcy auction. This large volume of SOL could potentially influence the market price and liquidity of the cryptocurrency.

The Essence: Breaking Down the Key Points

As part of the bankruptcy proceedings, multiple auctions were held to liquidate the assets of the failed crypto exchange FTX. These auctions included the sale of 41 million SOL tokens. Out of the total, around 11.2 million SOL, valued at $2.06 billion at the time of writing, are still locked.

According to a court filing last year, FTX disclosed that its remaining liquid crypto portfolio was valued at $3.4 billion. Of this amount, SOL tokens constituted a significant portion, valued at $1.16 billion.

Major Institutional Investors Acted Quickly

Several institutional investors played a crucial role in these auctions and over-the-counter (OTC) transactions to acquire SOL tokens. These large-scale purchases were made to avoid any direct impact on the market price of SOL.

Following the collapse of FTX in November 2022, several institutional investors expressed interest in acquiring SOL tokens at a discount. Some of these investors included Cumberland DRW, Hudson River Trading, Susquehanna, Tower Research, and Jump Trading.

These institutions were reportedly among the major buyers of SOL tokens in the bankruptcy auctions and OTC trades, aiming to capitalize on the opportunity to acquire SOL at a favorable price, while also avoiding any direct market impact.

Keep an Eye on the Numbers: SOL's Market Standing

At the time of writing, Solana (SOL) is trading at a price of $166.74 (₱9,685), showcasing a slight decrease of approximately 0.1% over the last 24 hours. SOL's market liquidity and the price movements post-unlock will be crucial factors to observe.

Depending on the decisions made by the institutional holders, whether to sell or hold their SOL tokens, the market could experience varying levels of price volatility and liquidity changes. Some traders might be keeping a close watch for any potential buying opportunities that may arise if SOL's price drops.

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