FTX to Unlock 11.2M SOL Worth $2.06B to be Unlocked On March 1
The unlocking of 11.2 million SOL tokens, valued at $2.06 billion, is set to occur on March 1. This event follows FTX's bankruptcy auction, where 41 million SOL tokens were sold in three auctions to top buyers, including Galaxy Digital and Pantera Capital. The unlocking of these tokens could lead to a sudden increase in supply, potentially causing selling pressure and a price drop. However, it may also improve market liquidity, making it easier to buy and sell SOL.
Following FTX bankruptcy auction, 11.2 million SOL tokens, valued at $2.06 billion, will be unlocked on March 1.
This comes after FTX sold 41 million SOL tokens in three auctions, with top buyers paying $64-$102 per token. Notable buyers include Galaxy Digital, Pantera Capital, and Figure, who purchased SOL through over-the-counter (OTC) transactions.
Historical price data
Like every other cryptocurrency, SOL registers significant volatility when positive or negative news drops. One such issue is the collapse of FTX, which negatively impacted prices. After notable events like the U.S. presidential election outcome, Solana‘s price surged, reflecting the broader market’s trends.
Regarding specific price movements, SOL crashed by 6.5% recently due to increased selling-over-buying pressure.
The unlocking of 11.2 million SOL tokens could cause a sudden increase in supply, which could lead to selling pressure and cause SOL’s price to drop. The influx of tokens could also improve market liquidity, making buying and selling SOL easier. The event’s outcome could further influence investor sentiment, potentially impacting the broader Solana ecosystem.
The actions of institutional investors, such as Galaxy Digital and Pantera Capital, will be closely watched, as their decisions may impact the market’s direction.
FTX Latest Move
FTX made a significant move today, transferring 0.3 Bitcoin, valued at around $29,000, in three separate transactions from a linked wallet. This test transaction aims to ensure a seamless payout process for creditors, scheduled to start tomorrow, February 18, 2025.
The repayment process will prioritize “convenience class” creditors, who have claims under $50,000. These creditors can expect to receive their full adjudicated claim value, plus 9% annual interest from November 2022, when FTX filed for bankruptcy. Notably, FTX has recovered over $16 billion in assets and plans to repay approximately 98% of its users with 119% of their claim value.
Those eligible creditors with claims under $50,000, classified as “convenience class” creditors will get 100% of their adjudicated claim value, plus 9% annual interest from November 2022. This is to starting on February 18, 2025, with the first group of creditors expected to receive their reimbursements by early March.
Furthermore, FTX will provide regular updates on the repayment process to ensure transparency and accountability. The repayment process aims to ensure fairness and equity among all creditors, with a focus on prioritizing convenience class creditors.
