Copy link
Increase text size
Decrease text size
Link copied

Solana Value Drops Over Fears of Liquidation by Troubled Crypto Exchange FTX

Concerns about crypto exchange FTX liquidating its Solana assets have led to a price drop.

Fri, 15 Sep 2023, 10:44 am UTC

Recent market jitters have been triggered by concerns that the distressed crypto exchange FTX might offload large volumes of Solana (SOL) and its associated assets. In the last day alone, Solana's value dipped by more than 6%.

Analytical insights provided by Solscan have illuminated the extent of FTX's holdings on the Solana network. The available data indicates FTX's holdings stand at around $1.5 billion in crypto assets. Surprisingly, Solana tokens only represent about $128 million of this stash. The dominant share of FTX's Solana holdings is spread across various other Solana-based cryptocurrencies. Noteworthy among these are Wrapped Bitcoin (WBTC), Maps token (MAPS), and Serum (SRM), plus several others often jokingly named after former FTX CEO, Sam Bankman-Fried.

Despite the reassurance that Solana tokens form a small portion of FTX’s portfolio, market sentiment remains wary. Several social media users on X (previously Twitter) have expressed fears of an impending market downturn due to FTX liquidating its assets. Some speculate a severe price drop for Solana.

On the brighter side, there are restrictions regarding how quickly FTX can liquidate its assets. As per FTX's bankruptcy documents, there are clear guidelines on how the assets can be sold. FTX had earlier proposed teaming up with Galaxy Digital Capital Management, headed by Mike Novogratz, to manage the liquidation of their crypto holdings. This would involve controlled sales, allowing FTX to only sell up to $100 million worth of its tokens in a week. There's flexibility to stretch this to $200 million for specific tokens, but the overarching goal is to protect the larger market from sudden shocks.

While this proposal sounds promising, it hasn't been officially approved. The Delaware Bankruptcy Court is expected to review this plan, along with other related topics, on September 13. For context, during a hearing in April, FTX revealed they had managed to regain about $7.3 billion in liquid assets. As of April, $4.3 billion in crypto assets were set aside for stakeholders to recover at market rates.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

  • PUBLISH (NEWS) $0.000557 (-5.19%)
  • Bitcoin (BTC) $28,071.90 (+3.54%)
  • Ethereum (ETH) $1,689.77 (+0.76%)
  • Tether USDt (USDT) $0.999956 (-0.03%)
  • BNB (BNB) $216.72 (+1.13%)
  • XRP (XRP) $0.520902 (+0.86%)
  • PUBLISH (NEWS) $0.000557 (-5.19%)
Jul 15, 2021 (Thursday)
13:30
BTC Surges by 1.16% Within 5 Mins, Marking 31,824.01 USDT
12:06
BTC Surges by 1.12% Within 5 Mins, Marking 32,104.8 USDT
10:25
BTC Drops by 1.03% Within 5 Mins, Marking 32,171.88 USDT
02:13
TriumphX Scouts 'MINAMCOMPANY' CEO Woo-Seong Lee As Creative Director
02:00
ETH Tops List Of Crypto Net Inflow With $298.96 Mln In Past 10 Hours
Jul 14, 2021 (Wednesday)
13:14
BTC Surges by 1.03% Within 5 Mins, Marking 32,738.08 USDT
09:03
BTC Surges by 1.01% Within 5 Mins, Marking 31,899 USDT
02:30
Crypto Market Sentiment On Jul 14: Market In "Extreme Fear"
02:00
ETH Tops List Of Crypto Net Outflow With $224.97 Mln In Past 10 Hours
Jul 13, 2021 (Tuesday)
02:30
Crypto Market Sentiment On Jul 13: Market In "Extreme Fear"
02:00
ETH Tops List Of Crypto Net Outflow With $178.61 Mln In Past 10 Hours
Jul 12, 2021 (Monday)
02:30
Crypto Market Sentiment On Jul 12: Market In "Extreme Fear"
02:00
BTC Tops List Of Crypto Net Inflow With $164.82 Mln In Past 10 Hours
Jul 11, 2021 (Sunday)
21:31
BTC Surges by 1.02% Within 5 Mins, Marking 34,475.6 USDT
10:00
ETH Tops List Of Crypto Net Inflow With $122.76 Mln In Past 18 Hours
06:17
SOBA Listed On LATOKEN
02:30
Crypto Market Sentiment On Jul 11: Market In "Extreme Fear"
02:00
BTC Tops List Of Crypto Net Outflow With $87.56 Mln In Past 10 Hours
Jul 9, 2021 (Friday)
21:40
BTC Surges by 1.08% Within 5 Mins, Marking 33,911.8 USDT
02:30
Crypto Market Sentiment On Jul 09: Market In "Extreme Fear"
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.