[ad_1]
The worth of Solana (SOL) has plunged greater than 6% the final 24 hours, amid fears that bankrupt crypto trade FTX could quickly liquidate its important parts of the token and different Solana-affiliated crypto belongings.
In accordance with a mix of information from Solscan, which has added up the worth of the three publicly out there FTX chilly storage wallets, the FTX property holds a mixed $1.5 billion in crypto belongings on the Solana community.
Of that weighty determine, Solana tokens account for simply $128 million.
The remainder of the quantity is comprised of quite a few Solana-based altcoins corresponding to Wrapped Bitcoin (WBTC), Maps token (MAPS), Serum (SRM) and various different tokens colloquially known as “Sam cash” — a jest on the former FTX CEO Sam Bankman-Fried.
Nonetheless, the concept that liquidators could quickly unleash $128 million value of SOL and lots of of thousands and thousands value of different SOL-affiliated tokens onto the market hasn’t impressed a lot confidence out there.
Numerous customers took to X (previously referred to as Twitter) to voice their considerations over the upcoming sell-off. “FTX about to dump $680 mil value of SOL 👀” wrote one consumer. “SOL goes to dump arduous after FTX sells its bag, going to achieve 14$ quickly,” said one other.
Others have as an alternative urged calm, because the chapter plan truly restricts how a lot might be bought off without delay
In accordance with FTX chapter filings, the proposed plan for the liquidation of FTX’s belongings imposes a sequence of situations on the sale of tokens.
On Aug. 24, FTX proposed to nominate Mike Novogratz’s Galaxy Digital Capital Administration because the funding supervisor that will oversee the gross sales of its recovered crypto holdings.
On this plan, the FTX property would solely be permitted to promote a most of $100 million value of its tokens every week, nonetheless, that restrict may very well be raised to $200 million on a person token foundation.
These limits have been launched in a bid to attenuate the impression of token gross sales on the broader market whereas nonetheless permitting for FTX to make collectors complete.
The FTX collapse and consequently greatest black swan Solana ever endured put SOL at $8
And we’re frightened about ~$600M that shall be bought over the course of the subsequent 5 years?
Some Main L1s have greater inflation than this and nobody cares.
— Gumshoe (@0xGumshoe) September 10, 2023
Notably, the plan has not but been signed off on by the courts, nonetheless, the plan and various different issues associated to the FTX token gross sales are anticipated to return earlier than the Delaware Chapter Court docket on Sept. 13.
Associated: FTX wallet shifts $10M in crypto, sparking fear of token dumps to come
In an April 12 listening to, FTX disclosed that it had recovered roughly $7.3 billion in liquid belongings, with $4.8 billion of that sum being comprised of assets recovered as of November 2022.
Total nonetheless, according to paperwork raised within the listening to, FTX held a complete of $4.3 billion in crypto belongings out there for stakeholder restoration at market costs as of April 12.
On the time of publication, Solana is altering arms for $18.38 apiece, down almost 11% for the week.
BitCulture: Fine art on Solana, AI music, podcast + book reviews
[ad_2]
Source link
