During the last weekend, the Solana (SOL) price got here underneath main promoting stress with its worth slipping underneath $18.50 ranges not too long ago. It’s because Solana traders have turned anxious that crypto traders may dump their Solana holdings after the FTX listening to in Delaware Chapter Court docket on Wednesday, September 13.
Reportedly, FTX is searching for approval for its liquidation of $3.4 billion in SOL, FTT, BTC, ETH, and different crypto asset holdings. Crypto change FTX held Solana as a significant a part of its reserves. Nevertheless, they offered SOL in large portions when the change crashed final yr in November 2022.
Of the full $3.04 billion in crypto property held by FTX, Solana constitutes the lion’s share. As of January 17, FTX’s cryptocurrency holdings have been estimated to consist of roughly $685 million in Solana (SOL) tokens, $529 million in FTT tokens, $268 million in Bitcoin (BTC), $90 million in Ethereum (ETH), together with a spread of different property, together with Aptos, Dogecoin, Polygon, XRP, and numerous stablecoins.
Will FTX Actually Promote Solana Holdings?
Nevertheless, many individuals appear to have ignored a big detail. The SOL tokens held by FTX debtors will not be instantly obtainable on the market. In distinction to the impression conveyed by the shared visible knowledge, these SOL tokens are topic to a lockup settlement. FTX, together with Alameda, had beforehand obtained 16% of the SOL provide instantly from the Solana Basis.
This acquisition got here with sure situations, primarily a lockup schedule. The present holding of 47.51 million SOL, which represents 8.82% of Solana’s eventual complete provide, is certain by this settlement.
Therefore, the misunderstanding that this SOL reserve is quickly tradable and poised for a market sell-off is essentially incorrect. The very fact is that these tokens are locked and can comply with a linear vesting course of spanning from 2025 to 2028.
In accordance with the phrases of the settlement, the SOL tokens will expertise gradual month-to-month releases till January 2028. Moreover, particular tranches, such because the 7.5 million SOL acquired from Solana Labs by Alameda Analysis, will solely grow to be accessible on March 1, 2025. One other tranche of 61,853 SOL is ready for unlocking on Could 17, 2025.
Thus, there’s little motive for traders to panic amid all of the FUD round Solana at this level.
The offered content material might embody the private opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any accountability in your private monetary loss.