FTX Estate plans to Auction its next round of Locked Solana Coins
Figure Markets co-founder and CEO Mike Cagney announced via Twitter (formerly known as Twitter) that the next round of locked Solana coins from the FTX estate will be an auction, with exact details coming Monday.
Just got confirmation that the next round of locked #solana coins from the #FTX estate 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
FTX is adopting a new strategy to sell off more Solana tokens that were locked up. This is a shift from private sales to using an auction method due to the high level of interest from potential buyers. The locked Solana tokens about to be unloaded made up the largest percentage of FTX's digital asset holdings at the time of its collapse.
This announcement is coming after the sale of $1.9 billion worth of Solana tokens to companies such as Galaxy Digital and Pantera in March this year.
In October 2023, it was reported that the FTX bankruptcy estate staked over 5.5 million SOL and just over 24,000 ETH on Figment, with transactions to show from blockchain addresses tied to the crypto exchange. Staking these tokens could help FTX Estate earn a significant amount of rewards over the next few years.
This auction sale has garnered a high level of interest from investors willing to take the risk of paying a discounted rate for the locked Solana tokens, which may not be sold until a certain date in the future.
The token’s current price is around 147.97 per SOL (USD), and its current market cap of 66.13B USD makes it a good decision to buy. However, the volatile nature of cryptocurrencies can change price projections before the tokens are unlocked and any funds are able to sell as uncertainty grips the market.
Are buyers willing to gamble on striking advantageous deals for tokens that remain locked until a future date? Despite the level of risk that cannot be controlled, the deal has the potential to come with huge rewards, considering the recent sales of Solana stored by FTX Estate.
In addition, Figure Markets has made plans to compete in the upcoming SOL auctions from the FTX estate. Mike Cagney is making plans for a Special Purpose Vehicle (SPV) to enable non-U.S. and accredited US investors subject to KYC to participate in the upcoming auction by FTX, as he believes it is an attractive opportunity.
The platform will use community consensus ($1 = 1 vote) on bid price and subsequent management (staking, liquidation). Investors can use The following currencies will be accepted for investment: USD, USDC, BTC, and ETH.
Figure Markets also plans to charge a 50-bps annual management fee for setting up and managing the SPV. Investors can visit here to indicate interest before the platform goes live.
The exact details of the auction sale are yet to be revealed. However, according to Mike, more information will be shared today.
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