CryptosHeadlines.com - The Leading Crypto Research Network
Solana’s price has dropped because people are worried that FTX, an exchange that’s not active anymore, will sell a lot of Solana at once. But it’s not very likely that they’ll do that all at once.
The price of Solana (SOL) has fallen by more than 6% in the past 24 hours because people are worried about a bankrupt crypto exchange called FTX. They think FTX might sell a lot of Solana and other cryptocurrencies related to Solana.
According to information from Solscan, which added up the value of three FTX wallets, the FTX estate has around $1.5 billion in crypto assets on the Solana network. Out of this, Solana tokens make up only $128 million.
The price of Solana has fallen 6% to $18.38 in the last 24 hours. Source: CoinGecko
The rest of the money is in different cryptocurrencies on the Solana network, like Wrapped Bitcoin (WBTC), Maps token (MAPS), Serum (SRM), and some others jokingly called “Sam coins” because of the former FTX CEO Sam Bankman-Fried.
Concerns Mount Over Potential $128 Million Solana Sell-off by Bankrupt FTX
People are getting worried that FTX, which is bankrupt, might sell $128 million worth of Solana and many other Solana-related tokens. This is making the market uneasy, and some users are talking about it on X (formerly known as Twitter). One person wrote, “FTX about to dump $680 mil worth of SOL” and another said, “SOL is going to dump hard after FTX sells its bag, going to reach 14$ soon.”
But some are saying we should stay calm because the bankruptcy plan has rules about how much can be sold at once. According to the FTX bankruptcy documents, there are conditions on selling these tokens.
FTX Restricts Crypto Sell-off in Bankruptcy Plan with Galaxy Digital Oversight
FTX, which is facing bankruptcy, has a plan to hire Galaxy Digital Capital Management, led by Mike Novogratz, to manage the sale of its recovered cryptocurrencies. According to this plan, FTX can only sell a maximum of $100 million worth of tokens each week. However, they can increase this limit to $200 million for each type of token.
These restrictions are put in place to prevent big effects on the overall cryptocurrency market while still ensuring that FTX can pay back its creditors.
FTX Bankruptcy Plan Awaits Court Approval, Hearing Set for September 13
The bankruptcy plan proposed by FTX has not been approved by the courts yet. However, it, along with other matters related to the sale of FTX tokens, will be discussed in the Delaware Bankruptcy Court on September 13.
In an earlier hearing on April 12, FTX revealed that they had recovered about $7.3 billion in cash and assets. Out of this, $4.8 billion was recovered by November 2022. However, at that time, FTX had about $4.3 billion worth of cryptocurrency assets available for creditors to recover at market prices.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
