FTX experienced a major collapse, leading to a significant downturn in cryptocurrencies, with altcoins like NEAR and SOL seeing substantial declines. The company’s balance sheet suffered even greater losses. These cryptocurrencies went through very challenging times in 2022 and 2023. However, as the day to pay creditors approaches, the risk of massive sell-offs is diminishing. FTX has liquidated a significant portion of these assets.
Why is Solana Falling?
Following a Bloomberg report, a notable decrease in the price of SOL Coin was observed today. FTX management sold approximately $1.9 billion worth of SOL to clear the collapsed crypto exchange’s debts. According to sources familiar with the matter, a portion of 30 million locked SOL Coins was sold at $64 each.
Although the sale of locked SOL Coins generated a total of $1.9 billion, the company still holds roughly one-third of the initial amount. The report suggests that the delay in SOL sales was due to “significant buyer interest.” Galaxy Trading, a subsidiary of Galaxy Digital, had set up a $620 million fund to purchase these assets. It is known that other companies are also attempting to create funds worth hundreds of millions of dollars.
FTX’s Solana (SOL) Holdings
FTX holds approximately 41 million locked SOL Coins, valued at around $7.5 billion. Neptune Digital previously announced the purchase of 26,964 SOL at $64 each. 20% of the $1.73 billion in assets will become unlocked in March 2025. Similarly, Pantera announced in March that it had established a $250 million fund to purchase FTX assets.
FTX‘s collapse initially drove the price of Solana below $10 to $8.5, but thanks to its strong community, SOL Coin rebounded above $200. Additionally, GSOL Trust has similarly pulled the SOL Coin price upward, much like the relationship between BTC and GBTC in 2021. Consequently, institutional demand remained strong for an extended period.
Now, with lock-up releases set for 2025, investors maintain their keen interest in SOL Coin. Its speed and low cost, enabling millions of daily active users, remain SOL Coin’s biggest advantages.
