A strategic plan endorsed by the FTX estate envisages the sale of locked Solana tokens in the second round, raising bids from between $85 to $110 per token. The auction, worth 1.8 million SOL, was contested by several bidders, of which Galaxy Trading and Pantera were well-known.
Investor Interest and Bidding Dynamics
Tenders were subject to rigorous KYC guidelines, and companies were expected to have secured their bids by April 25. Nevertheless, successful bids have been recorded at $95 and above, whereas bids as low as $85 might not be accepted. This has amounted to a 13%—to 26% discount to the current market prices. The discount is because tokens are seen as lodgers, and there is a delay in releasing them to the market.
Galaxy Trading, wholly owned by Galaxy Digital, was planning to attract more investors and came up with an idea to increase the cost of its SOL tokens. We are inclined to amplify our exposure to the latest auction distributed by Pantera Capital, purchasing tokens subject to a 4-year vesting period.
In the future, the estate will be headed towards the next sale on May 1. Mike Cagney, CEO of Figure Markets, will organize this. The process of setting up a special purpose vehicle at Figure Markets to bid for the locked SOL is striving to attract non-US and US accredited investors only.
Debt Alleviation Strategies and FTX Future Auction Plans
This step is one of those made earlier by FTX, which sold 1.9 billion worth of Solana tokens, thus showing FTX’s continuity of the plan to manage the debt and streamline operations. The 41 million SOL tokens that the estate authority is still holding, with an estimated valuation of 7.5 billion US dollars, continue to attract investors’ attention even as market forces fluctuate.
The price of the Solana token dropped slightly to $174.2 by 1 p.m. ET this afternoon, and the price continued to move in a similar direction. FTX’s bankruptcy announcement in November 2022 still brings a good level of interest from investors who are considering buying a majority of FTX’s Solana product portfolio as a key aspect of digital assets.
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