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FTX Completes Solana Token Sale Worth $2.6 Billion
In the latest move that ends weeks of auctions, the cryptocurrency exchange’s assets are in bankruptcy FTX completed the sale of Solana for a value of 2.6 billion dollars at a deep discount (SOL) tokens.
Among the latest buyers in this high-stakes auction are prominent firms Figure Markets and Panther Capital.
The FTX sell-off
According to Bloomberg relationship, Figure Markets acquired a sizeable block of 800,000 Solana tokens for around $80 million, paying an average of around $102 per token. This represents a significant discount to the market price of approximately $166 at the time of purchase.
Pantera Capital also participated in the auction, although details on the purchase price remain secret. The sale of FTX’s Solana tokens began in April after receiving court approval.
According to two other sources who requested anonymity, Figure paid about $80 million for a block of 800,000 coins because the auction results are not public.
A source told Bloomberg that Figure paid about $102 per token, significantly below the market price. As a result, the price of Solana tokens fell 4% to around $169 as of 2:10 pm in New York.
The collapse of FTX, resulting from the financial mismanagement of its disgraced founder, Sam Bankman Fried, was a major case in the cryptocurrency industry. Despite owing more than $11 billion to its two million customers and other creditors, FTX disclosed an excess cash reserve of $16.3 billion, positioning itself to repay its creditors in full, including interest.
However, the discount offered by the failed exchange resulted in a notable drop in the price of SOL, although the news did not trigger a sell-off. Solana is currently trading at $167.8, reflecting a loss of 0.6% over the past 24 hours.
FTX’s path to financial recovery
FTX’s journey to financial recovery has been tumultuous and characterized by strategic maneuvers and legal complexities.
After his collapse and the revelation of an $8 billion deficit, FTX embarked on a mission to fully repay its creditors. He submitted a new repayment plan that promises full recovery and additional compensation, subject to court approval. The plan aims for an equitable distribution among creditors, with payments estimated at between $14.5 billion and $16.3 billion.
The proactive liquidation of assets by the exchange efforts and the discovery of a buffer of excess liquidity have inspired confidence in the recovery plan, signaling positive prospects despite the challenges.
Despite controversy over repayment calculations based on November 2022 values rather than current market prices, FTX’s commitment to meeting financial obligations and compensating creditors reflects its determination to address post-collapse challenges.
As FTX faces legal complexities and financial uncertainties, the cryptocurrency industry is closely watching its progress, anticipating the resolution of its bankruptcy and the implications for the regulatory frameworks that govern digital assets.
The evolving saga of FTX’s financial recovery highlights the volatile nature of the market and the resilience needed to overcome such challenges, marking a pivotal moment in the history of the exchange and the broader cryptocurrency landscape.