FTX Estate Bullish on Solana? Stakes 5.5M SOL Coins
- The FTX estate has staked a whopping 5.5 million SOL coins according to a blockchain transaction.
- The transfer took place from the exchange’s wallet to Figment, a staking validator firm for institutional investors.
- The staked coins based on current prices are worth $122M and represent a small fraction of FTX’s SOL holding.
- The exchange was an early investor in Solana and receives every month a significant volume of SOL unlocked.
The FTX estate, which is currently undergoing reorganization, has staked a whopping 5.5 million SOL tokens, sending a message to the entire industry that the bankrupt crypto exchange is bullish on the altcoin. The coins were staked on October 13, according to on-chain analysis done by industry experts.
FTX estate holds around 5.5 million native tokens of the Solana blockchain, SOL, and as per on-chain data, the estate sent these tokens from its own wallet to Figment, a staking validator firm for institutional investors. The transaction was first detected by blockchain transactions tracker Whale Alert, and it was later revealed that the initiator of the transaction was an address belonging to the crypto exchange estate.
The total coins staked based on current prices are worth $122 million and only represent a small fraction of Solana that the crypto exchange holds. It is important to mention here that staking involves locking the coins up for a fixed period of time to earn additional coins as interest on the principal amount staked. FTX has locked in the 5.5 million SOL for a certain period of time, and it seems that the estate expects a price increase in the near future.
A crucial fact to note here is that FTX was an early investor in Solana and, as a result, receives every month a significant volume of SOL unlocked as per the previously established vesting schedule. The bankrupt exchange has the option to liquidate its holdings anytime it wants. Currently, the entire estate is overseen by a bankruptcy trustee, whose primary role is to oversee the recovery of assets for the exchange’s creditors.
Interestingly, in September, the bankruptcy court approved the sale of $1.3 billion in SOL tokens, causing panic among investors about a price dump. As a result, the presiding judge ordered the sale through an investment adviser in weekly batches.
As reported earlier by Bitnation, FTX founder Sam Bankman-Fried wanted to pay $5 billion to prevent Donald Trump from running in 2024. He also had aspirations to become President of the United States.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
