FTX Estate Demonstrates Bullish Confidence in Solana (SOL) with $122 Million Staking
In a surprising move that has sent ripples through the cryptocurrency community, FTX estate has demonstrated a strong bullish sentiment on Solana’s native token, SOL. The renowned exchange staked over 5.5 million SOL coins on October 13, signaling its commitment to the Solana ecosystem.
The transaction was first spotted by the blockchain tracker Whale Alert, causing a buzz in the crypto space. Subsequent investigations revealed that an FTX-identified wallet had sent these coins to Figment, a reputable staking validator firm known for serving institutional investors. The pseudonymous on-chain researcher Ashpool confirmed the FTX estate’s involvement in the transaction, shedding light on the significance of this move.
The 5.5 million SOL coins staked by FTX estate are valued at approximately $122 million, representing a small fraction of FTX’s total holdings in SOL. This move, though significant, is part of a broader strategy by FTX, which was an early investor in Solana. As part of their investment agreement, FTX regularly receives a substantial volume of SOL tokens, as per the established vesting schedule. The FTX estate maintains the flexibility to liquidate these holdings at any time.
FTX bankruptcy trustee FTX estate staked 5.5 million SOL (US$121 million) through Figment on the 14th, with an 6.99% APY. FTX Group currently holds 55.86 million SOL ($1.23 billion), of which more than 42.16 million SOL belongs to Alameda and is locked.https://t.co/ZKvYzkX0oI
— Wu Blockchain (@WuBlockchain) October 14, 2023
The FTX estate is currently overseen by a bankruptcy trustee, and its primary role is to recover assets for the exchange’s creditors. This trustee’s involvement in staking SOL reflects the exchange’s long-term commitment to the Solana ecosystem and its belief in the token’s potential for growth.
This recent development should be seen in the context of a significant event that took place in September. A U.S. court approved the sale of $1.3 billion in SOL from FTX, which initially caused concerns among SOL holders about a potential price slump. To mitigate the impact on the crypto market, the bankruptcy court mandated that the sale occur through an investment adviser in weekly batches.
The market response was not entirely positive, with SOL’s price experiencing a dip to a two-month low of $17.34 on September 11. However, FTX’s decision to stake a substantial amount of SOL post-sale demonstrates its confidence in the long-term potential of the token and the Solana blockchain.
This move also highlights the increasing importance of staking in the cryptocurrency space. Staking is a process that involves locking up a specific amount of coins for a predetermined period, during which stakers receive rewards in the form of additional coins. By staking their SOL holdings, FTX estate is not only securing the Solana network but also capitalizing on the rewards generated from their staked assets.
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