FTX Estate Selling Locked Solana Worth $7.5 Billion
In a recent announcement, the estate of the now-defunct crypto exchange FTX is selling the remaining 41 million locked Solana assets worth $7.5 billion. For the past few days, the demand for FTX’s locked Solana has been on the rise.
In September last year, the FTX selected Galaxy Asset Management to facilitate the sale of the 41 million locked Solana assets. After careful consideration the FTX team observed that the Galaxy team was suitable to facilitate the imminent sale of the tokens at a lower price.
Investors Show Interest in Acquire FTX Locked SOL Tokens
The report indicates that the Galaxy team will issue the tokens to the potential buyers. Based on demand for the FTX Solana assets, some of the interested parties are going the extra mile to raise funds to place the highest bid.
In an earlier report, Neptune Digital was the first company to demonstrate interest in acquiring the Solana stake assets issued by the FTX estate. At that time the Neptune team confirmed to purchase 26964 SOL at $64 per token.
Under the purchase deal, Neptune stated that 20% of the locked assets will be unlocked by March next year, while 80% of the tokens will be unlocked monthly for the next four years. The closure of the Neptune sales deal challenged other investors to show interest in acquiring the locked Solana assets.
Reportedly, the Galaxy trading platform led other crypto firms to acquire the FTX-locked assets. A source privy with the information disclosed that to obtain a measurable amount of locked Solana assets the Galaxy team conducted several fundraising projects to generate the desired amount.
FTX Seek to Repay Customers
The source stated that the Galaxy purchased the locked SOL at $64 per token. The report indicated that investors interested in buying the token would settle the management fee.
In a separate report, two investors complained after closing the sale deal with the Galaxy, they received 13% less of the token they had acquired. A source familiar with this report confessed that the deduction stemmed from FTX’s involvement in the distribution of the locked assets.
Beyond this the lucky investors will earn staking rewards computed according to the amount of tokens purchased. Due to the high demand for the locked SOL tokens, the estate mandates BitGo to offer custodial services for the tokens.
Upon contacting the bankrupt crypto exchange to inquire whether the locked SOL tokens were available, the estate confirmed that some tokens were remaining. The FTX team added that the locked assets will be available for sale by next month.
Process of Acquiring FTX’s SOL Tokens
Elsewhere, the investor engaged in embroiled discussion on why the demand for the FTX-locked SOL was high. One of the investors argued that the demand increased when the potential buyers realized that they were not exposed to these tokens.
According to Bloomberg, the Pantera team conducted a fundraising project to acquire the SOL tokens. At that time, Pantera anticipates using the investment to purchase more than $250 million worth of locked Solana tokens from the FTX estate.
Out of this amount, Pantera anticipates that 0.75% and 10% will be deducted to cater for management and performance fees. Correspondingly, the famous investment company Phoenix Digital planned to raise funds from investors to acquire the locked SOL tokens.
High Demand for FTX Locked SOL Tokens
A source familiar with the information argued that from the funding round, the Phoenix planned to generate closer to $100,000. Reports indicate that the Phoenix fundraising for acquiring the FTX SOL assets did not materialize.
Shortly after the Phoenix deal failed to actualize Falcon X revealed plans to acquire the SOL tokens from the estate. Besides selling the locked SOL tokens, the Galaxy team sold 42 different tokens valued at $211 million.
These tokens are centred on either the Solana or Ethereum networks, including $29.4 million of gate tokens, and $23 million of shadow tokens, among others. The sale to the FTX-locked Solana tokens came days after US judge Lewis. A. Kaplan announced the sentencing of former FTX boss Sam Bankman Fried. The court concluded that SBF would serve 25 years imprisonment for exposing the customers to huge losses.
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