FTX completes sale of $2.6b worth of Solana tokens
In a final move concluding weeks of auctions, the estate of the bankrupt crypto exchange FTX has completed the sale of $2.6 billion worth of deeply discounted Solana (SOL) tokens.
The latest buyers in this high-stakes auction included prominent firms Figure Markets and Pantera Capital.
FTX’s selloff
According to a Bloomberg report, Figure Markets acquired a substantial block of 800,000 Solana tokens for approximately $80 million, paying an average of around $102 per token. This represents a significant discount compared to the market price of about $166 at the time of purchase.
Pantera Capital also participated in the auction, though details about their purchase price remain undisclosed. The sale of FTX’s Solana tokens began in April after receiving court approval.
According to two other sources who requested anonymity, Figure paid about $80 million for a block of 800,000 coins because the auction results are not public.
One source told Bloomberg that Figure paid roughly $102 per token, significantly below the market price. As a result, the price of Solana tokens dropped 4% to approximately $169 as of 2:10 p.m. in New York.
FTX’s collapse, stemming from the financial mismanagement of its disgraced founder, Sam Bankman-Fried, has been a prominent case in the crypto industry. Despite owing over $11 billion to its two million customers and other creditors, FTX has revealed a surplus cash reserve of $16.3 billion, positioning itself to fully repay its creditors, including interest.
However, the discount offered by the bankrupt exchange resulted in a noticeable drop in SOL price, although the news did not trigger a sell-off. Solana is currently trading at $167.8, reflecting a 0.6% loss in the last 24 hours.
FTX’s path to financial recovery
FTX’s journey to financial recovery has been tumultuous and characterized by strategic maneuvers and legal complexities.
After its collapse and the revelation of an $8 billion deficit, FTX embarked on a mission to repay its creditors fully. It unveiled a new repayment plan promising full recovery and additional compensation, subject to court approval. The plan aims for equitable distribution among creditors, with payments estimated between $14.5 and $16.3 billion.
The exchange’s proactive asset liquidation efforts and the discovery of a surplus cash reserve have inspired confidence in its recovery plan, signaling a positive outlook despite challenges.
Despite controversies over repayment calculations based on November 2022 values rather than current market prices, FTX’s commitment to fulfilling financial obligations and compensating creditors reflects its determination to navigate post-collapse challenges.
As FTX navigates legal intricacies and financial uncertainties, the crypto industry closely watches its progress, anticipating the resolution of its bankruptcy and implications for regulatory frameworks governing digital assets.
The evolving saga of FTX’s financial recovery highlights the volatile nature of the market and the resilience required to overcome such challenges, marking a pivotal moment in the exchange’s history and the broader crypto landscape.
