October 18, 2024
FTX estate stakes 5.5M Solana coins

FTX Real Estate appears to be bullish on Solana’s native token, SOL (SOL), as it staked over 5.5 million SOL tokens on October 13. Based on on-chain data, an FTX-identified wallet sent the tokens to staking validator Figment, a company targeting institutional investors.

The transaction is detected Powered by Blockchain Tracker Whale Alert and above It has been identified The FTX legacy address of Ashpool, a researcher on the pseudonymous chain. The tokens are worth $122 million and represent only a small portion of FTX’s holdings of SOL.

Staking involves locking up a specific amount of tokens for a set period of time. Stake holders are rewarded with SOL coins for using their pledges to protect network security.

FTX is an early investor in Solana and receives a large amount of SOL unlocked every month based on an established vesting schedule. FTX Legacy may elect to liquidate these assets at any time. The FTX Estate is overseen by a bankruptcy trustee. Its main role includes recovering assets from exchange creditors.

In September, a U.S. court approved the sale of $1.3 billion of SOL from FTX, causing holders to worry about a price collapse. To avoid adding to the burden on the cryptocurrency market, the bankruptcy court ordered the sale in weekly tranches through investment advisers. This decision caused SOL’s price to fall to a two-month low of $17.34 on September 11.

FTX holds $3.4 billion worth of Digital Asset A, which is among the top 10 assets held by the company and includes cryptocurrencies such as Solana, Bitcoin (BTC), Ethereum (ETH), Aptos (APT), and more. More than $7 billion has been recovered since the exchange filed for bankruptcy protection in November, according to court documents filed in September.

FTX co-founder Sam Bankman-Fried is on trial in Manhattan District Court, charged with fraud and conspiracy to commit fraud. If convicted, he could be sentenced to up to 115 years in prison.

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