In a significant development, FTX bankruptcy trustees sold about two-thirds of a $2.6 billion Solana (SOL) stock at a “deeply discounted price.”
Industry figures such as Galaxy Trading and Pantera Capital were among the investors involved in the deal, according to people familiar with the matter, as well as reported by Bloomberg.
Four-year journey of SOL tokens
According to the report, the FTX estate managed to sell between 25 million and 30 million locked Solana coins at $64 each, generating up to $1.9 billion in revenue for the estate.
Under Mike Novogratz’s Galaxy Digital, Galaxy Trading was able to raise approximately $620 million for a fund established to purchase SOL from FTX Property. According to the report, investors in the vehicle will be subject to a 1% management fee, and the investment will offer yield through staking.
It is worth noting that the 41 million Solana tokens sold by the FTX property are locked according to a pre-agreed grace period, preventing them from being available for trading on the market.
According to Bloomberg, these tokens will gradually become available for sale over four years, which could significantly impact SOL’s price movement. However, as the tokens remain locked, SOL’s 739% year-to-date (YTD) uptrend remains intact, and the possibility of additional earnings remains on the cards.
Solana Sale Draws Interest From Prominent Figures
FTX co-founder Sam Bankman-Fried condemned of fraud and sentenced to 25 years in prison, he was a great supporter of SOL.
As previously reported, Bankman-Fried became actively involved with guards at the Metropolitan Detention Center, where he is currently incarcerated. He offers investment advice and recommends SOL as a potential opportunity, demonstrating his bullish sentiment towards the protocol.
The token, which operates on the Solana blockchain, made up a significant portion of the digital assets held on the collapsing exchange, creating shockwaves across crypto markets.
In addition to Galaxy Digital, Bloomberg notes that the SOL token sale has attracted the attention of Pantera Capital. This $5.2 billion asset manager supposedly raised capital for a special fund to acquire up to $250 million SOL of FTX equity.
Vancouver-based Neptune Digital Assets Corp. also announced the purchase of 26,964 SOL tokens for $1.7 million on March 27. However, FTX’s creditors are concerned that they will be undercompensated in the SOL sale process.
Creditors dispute FTX’s bankruptcy decision
In January, the judge overseeing the bankruptcy case ruled that the value of each claim should be based on the amount owed to the customer or creditor on the day FTX filed. bankruptcy. At that time, SOL was trading at around $16, well below its current market price.
As the price of SOL has risen in recent months, this discrepancy has become a point of contention for some lenders. One creditor, Sunil Kavuri, expressed during Bankman-Fried’s final sentencing hearing that SOL coins are “our property.”
Another creditor, whose name was withheld in court documents, said in a written statement that the FTX estate is “giving free money to hedge funds.” In a recent interviewBankman-Fried stated the following in regards to growing customer concerns about underpayments:
I have heard and seen the desperation, frustration and sense of betrayal from thousands of clients; they deserve to be paid in full, at the current price. This could and should have happened in November 2022, and it could and should happen today. It is unbearable to see them waiting, day after day.
Currently, the price of SOL is at $175, reflecting a drop of up to 6.7% in the last 24 hours and more than 7% in the last week.
Featured image from Shutterstock, chart from TradingView.com
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