bankrupt FTX The exchange’s request to convert crypto assets into fiat currency is scheduled to be addressed in a court hearing on September 13. On August 23, the firm submitted a petition outlining its plan to convert crypto assets to fiat to unify creditors.
As a result, creditors and token holders are closely watching the outcome of the hearing. This could lead to recoveries of up to $3.4 billion.
The crypto market is aware of this potential sell-off across markets, especially solana It is awash with theories about whether it will cause downward pressure on its tokens.
FTX Sell-Off Fears Dissipate
FTX and Alameda first acquired SOL from Solana Foundation in August 2020, six months after the mainnet beta launched.
As a result, the bankrupt firm now owns hundreds of millions of dollars worth of SOL, its largest holding. Estimates from court documents show that there are 47.5 million tokens, worth a total of approximately $685 million. There is also a large stash of FTT tokens.
However, under the agreement at the time, most were locked into vesting until 2028. This means the firm can only sell $100 to $200 million per week of its crypto assets.
I am seeing a lot of wrong information being spread about FTX liquidating their holdings
They can only sell up to $200ma week of assets $LEFT is their largest holding but most of their Solana is locked up in vesting and can’t be sold for years pic.twitter.com/9dFseAABOx
— Johnny (@CryptoGodJohn) September 10, 2023
everyone this altcoinHe wasn’t convinced that . “DeFi Investor” said:
SOL price may still be affected in the short term. But it’s not as bad as everyone expected.
Alan Schill, founder of Zanshin Capital, was more negative about the project. After saying that nothing was positive for the SOL, he added:
There is so much mainstream supply, it’s crazy. FTX is not the only SOL investor who deserves coins. It would be better to focus on new projects in this cycle.
Solana Price Outlook
However, nervous traders have already begun dumping SOL over the weekend. As a result, the token fell 5.8% on the day to its intraday low of $17.87. FTT, on the other hand, lost nearly 9% of its value during the day.
At the time of writing, SOL is trading at $18.18, down 11% over the past two weeks as selling pressure increases. SOL is currently at its lowest level since late June and the worst performer in the top 30 this Monday morning crypto- existence.