The cryptocurrency world is preparing for a wave of activity on two major fronts: the upcoming auction of Solana (SOL) tokens locked from the bankrupt FTX asset and the inactive Mt. Potential early repayments for creditors of the Gox exchange.
FTX’s SOL sale came to the fore
cryptokoin.com As we reported, FTX, the once-dominant crypto trading platform that imploded in late 2022, is preparing to auction some more of its locked SOL assets. This follows the successful sale of $4.5 billion worth of SOL in two previous fixed-price transactions, which were snapped up by the likes of Galaxy Digital and Pantera Capital.
But this time the stakes are different. Unlike previous sales, the price in the upcoming auction will be determined by market forces. This has created a wave of excitement in the crypto community and many investors are eager to purchase these locked SOL tokens at a discount. The attraction comes from the significant price difference between past sales (about $60 per token) and Solana’s current market cap of about $150.
However, there is an important caveat… These tokens come with locked timelines, meaning buyers cannot immediately convert them for a profit. Another noteworthy item is the participation of Figure Markets, a decentralized finance platform. Figure plans to form a Special Purpose Vehicle (SPV) specifically to participate in FTX SOL auctions. This SPV will allow accredited US investors and non-US investors (subject to KYC) to pool resources and potentially gain a competitive advantage in the upcoming bidding war.
Mt. Gox will pay BTC to cryptocurrency creditors
As the FTX saga continues, the infamous Mt. A ray of hope appeared for the creditors of the Gox exchange. Mt. Gox website has reportedly included the addition of crypto payment options, leading to speculation that Bitcoin refunds may begin sooner than expected. The potential payout amount is quite high: 142,000 Bitcoins, along with Bitcoin Cash (BCH) and Yen, are earmarked for distribution to creditors. However, this expectation brings with it the potential for serious sales pressure in October, the expected time period for repayments.
Expecting a mass sale, Mt. Gox creditors are waiting for a long time. Because some of them waited almost ten years to recoup their losses. Analysts predict the possibility of a sell-off impacting the Bitcoin market once these locked funds are unlocked. Despite the potential volatility, there are positive signs. Progress has been reported in the form of first bank account repayments, with some creditors receiving double payments in late 2023. This is the case with Mt. It instills some confidence that long-awaited repayments for Gox creditors may finally be happening.
Is there selling pressure?
FTX’s SOL auctions and Mt. Gox’s potential Bitcoin redemptions paint a picture of a crypto market grappling with both opportunity and uncertainty. While the chance to acquire discounted SOL tokens or finally reclaim lost funds is appealing, the potential for market volatility and unforeseen circumstances add a layer of complexity. Especially BTC, BCH going to many old investors has the potential to increase selling pressure.
To be informed about the latest developments, follow us Twitter’in, Facebookin and InstagramFollow on . Telegram And YouTube Join our channel.