After the liquidation of Solana (SOL) tokens worth $1.9 billion, cryptocurrency exchange FTX continues to make attention with its plan to auction the remaining SOL.
Instead of selling at a fixed price, FTX will host an auction for the locked tokens, according to information from Figure CEO Mike Cagney. This decision was taken after previous sales to large investment funds like Galaxy Digital and Pantera Capital brought positive results. Specific details about the auction have not yet been announced and FTX has not issued an official comment.
Just got confirmation that the next round of locked#solanacoins from the#FTXestate will be an auction, with exact details coming Monday. If you want in, join us. https://t.co/RuA41vgWAx
— Mike Cagney (@mcagney) April 20, 2024
Despite being subject to a lock-up period, the Solana tokens, which made up the largest proportion of FTX's digital asset portfolio before the collapse, still attracted strong interest from investors. They are willing to accept the risk to buy at a discounted price, hoping for the potential price increase of SOL in the future. The previous sale, which accounted for about two-thirds of FTX's total Solana tokens, brought in $2.6 billion at a price of about $60 per token.
With Solana's current price fluctuating around 150 USD, investors' decision to buy seems to be beneficial. However, given the high volatility of the market, SOL price may change significantly before the token is unlocked.
Despite the risks, demand for locked Solana tokens remains high. Cagney's Figure Markets plans to establish a Special Purpose Vehicle (SPV) for foreign investors and accredited US investors to participate in the auction. This move received support from creditor Sunil Kavuri.
