According to The Block: FTX is adopting a new strategy for offloading its lion's share of locked Solana tokens, shifting from private sales to an auction format due to significant demand from potential buyers.
FTX's enormous trove of locked Solana tokens, which made up the largest portion of the exchange's digital assets portfolio, is on the slate for auction following a successful private sale of $1.9 billion worth of Solana tokens. Industry heavyweights such as Galaxy Digital and Pantera were among the previous purchasers according to Figure CEO, Mike Cagney. The specifics of the upcoming auction remain under wraps, and FTX has yet to comment on the situation.
These locked Solana tokens have sparked remarkable interest from investors ready to gamble on striking advantageous deals for tokens that remain locked until a future date. Despite the inherent risk, the potential for hefty rewards is substantial, considering the recent sale of about two-thirds of FTX's Solana hoard netted the exchange $2.6 billion at a cost of just $60 per token. With Solana's current price fluctuating around $150, the gamble seems to be paying off, although the notoriously volatile nature of cryptocurrencies can significantly alter these projections once the tokens become unlocked.
Eager to capitalize on the remaining buyer interest, Figure Markets, led by Mike Cagney, plans to construct a Special Purpose Vehicle to enable non-U.S., as well as accredited U.S. investors, to participate in the upcoming auction - a scheme applauded by vocal creditor Sunil Kavuri.
