The FTX estate staked more than 5.5 million SOL on October 13 suggesting that it is optimistic about Solana. On-chain data indicates that the coins were transmitted to Figment, a staking validator company for institutional investors, by a wallet with the FTX identifier.
FTX estate address was eventually determined to be the source of the transaction by anonymous on-chain researcher Ashpool after it was discovered by blockchain tracker Whale Alert. A small portion of FTX’s SOL holdings, totaling $122 million, are represented by the coins staked. Staking entails securing a predetermined number of coins for a predetermined amount of time. In exchange for safeguarding the network with their investments, stake holders receive SOL coins as compensation. The defined vesting timeline results in FTX frequently receiving a sizeable amount of SOL unlocked. FTX was an early investor in Solana. These holdings are subject to liquidation at any time by the FTX estate, which is managed by a bankruptcy trustee. Recovering assets for the exchange’s creditors is its main responsibility.
With the sale of $1.3 billion in SOL from FTX allowed by a US court in September, holders of the stock began to worry about a possible price decline. The bankruptcy court mandated that the sale take place through an investment adviser in weekly batches in order to prevent burdening the cryptocurrency market. SOL’s price fell to a two-month low of $17.34 on September 11 as a result of the decision.
Among the top 10 assets held by the corporation, including Solana, Bitcoin, Ether, Aptos, and other cryptocurrencies, FTX has $3.4 billion in Digital Assets A. Since the exchange sought bankruptcy protection in November 2022, nearly $7 billion has been recovered, according to court documents from September. The co-founder of FTX, Sam Bankman-Fried, is presently on trial in a Manhattan district court for fraud and conspiracy to conduct fraud. He could spend up to 115 years in jail if proven guilty.