Solana Price Plunges Amid Fears of FTX Asset Liquidation
Summary:
The price of Solana (SOL) has dropped by over 6% in 24 hours amid concerns that bankrupt crypto exchange FTX may sell off its Solana-related assets. FTX holds $1.5 billion in crypto assets on the Solana network, with Solana tokens accounting for $128 million. The bankruptcy plan restricts token sales, allowing a maximum of $100 million to be sold each week. The plan is awaiting court approval. Solana is currently trading at $18.38, down nearly 11% for the week.
The price of Solana (SOL) has experienced a decline of over 6% in the past 24 hours. This drop is believed to be due to concerns surrounding bankrupt crypto exchange FTX potentially liquidating a significant amount of SOL and other Solana-related crypto assets. Within the last day, the price of Solana has fallen to $18.38. According to data from Solscan, the FTX estate holds approximately $1.5 billion in crypto assets on the Solana network, with Solana tokens accounting for $128 million of that total. The remaining assets consist of various Solana-based altcoins, including Wrapped Bitcoin, Maps token, Serum, and other tokens often referred to as "Sam coins," a play on the former FTX CEO's name. The prospect of liquidators releasing $128 million worth of SOL and hundreds of millions worth of other SOL-affiliated tokens onto the market has led to concerns among some users. However, the bankruptcy plan outlines restrictions on token sales, with a weekly limit of $100 million that can be sold, and individual tokens potentially allowing for a maximum of $200 million in sales. The plan is still awaiting approval from the courts and is expected to be reviewed on September 13 by the Delaware Bankruptcy Court. In an April 12 hearing, FTX revealed that it had recovered approximately $7.3 billion in liquid assets, with $4.8 billion of that amount being recovered as of November 2022. As of April 12, FTX held a total of $4.3 billion in crypto assets available for stakeholder recovery at market prices. Currently, Solana is being traded at $18.38, marking an almost 11% decline for the week.
Published At
9/11/2023 6:08:45 AM
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