Bankrupt cryptocurrency exchange FTX may be planning to dump its massive Solana holding based on the recent token transfers from its various wallets. Data on Solscan, a blockchain explorer, indicates that the exchange’s hardware wallets began moving the SOL tokens on Friday morning. The data also shows all the FTX wallets hold over 7 million Solana tokens worth approximately $133.5 million as of this writing.
Last year, the Solana Foundation revealed that it sold over 58 million SOL to FTX and Alameda Research, a trading firm founded by former FTX CEO Sam Bankman-Fried. That said, the actual amount of Solana tokens that the fallen crypto exchange held at the time it filed for bankruptcy last year remains unclear.
Meanwhile, Solana founder Anatoly Yakovenko is asking FTX’s management team not to dump the SOL tokens but rather distribute them directly to the exchange’s customers. He says the distribution will benefit the Solana blockchain in the long term. Yakovenko fears that if FTX sells all its SOL holding at once, the move could cause the token’s price to sink deeper. Solana is currently changing hands for $19.52, according to CoinGecko.
Will FTX Sell Its SOL Holding?
FTX’s leadership has yet to confirm if it plans to sell its SOL holding. However, prominent cryptocurrency venture capitalist Adam Cochran wrote on his X account that Bankman-Fried agreed to lock the SOL tokens for a specific time before selling. So, he thinks the period may have elapsed.
Yakovenko saw the crypto venture capitalist’s post and commented. The Solana founder reiterated his statement, asking Cochran to advise the FTX estate not to sell the exchange’s SOL holding if he has influence in the institution.
FTX’s former customers are still waiting to be compensated after the trading platform went under in late 2022. Before the exchange collapsed, it had close ties to SOL, currently the tenth biggest crypto asset by market capitalization. Bankman-Fried was a huge supporter of the Solana ecosystem, investing in several projects built on that blockchain. His company even built a marketplace for Solana-based NFTs.
The FTX Ex-boss is now facing several criminal charges in relation to the downfall of the exchange.
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