FTX Estate Engages in Staking with 5.5 Million Solana Tokens

FTX estate stakes 5.5M SOL token

FTX Estate took action by staking over 5.5 million Solana (SOL) tokens, valued at approximately $122 million, on October 14th. According to on-chain data from SolanaFM, a wallet labeled FTX Estate delegated this amount to Figment, a company specializing in staking for large organizations. However, the staked SOL represents only a small portion of FTX’s total holdings. FTX Estate plays a role in recovering assets for the exchange’s creditors.

FTX has been an early investor in Solana since August 2020 and is receiving periodic vesting of SOL until 2027-2028. Consequently, they have the authority to “dump” these tokens into the market, causing concerns among holders. However, a court decision has temporarily eased these concerns.

As of the end of August 2023, FTX has recovered about $7 billion in assets, including $1.1 billion in SOL, $560 million in Bitcoin (BTC), $200 million in real estate in the Bahamas, and $1.9 billion in other illiquid assets. To repay debts and avoid a significant impact on the market, the U.S. court has approved a phased liquidation process, with sales valued at $100-200 million per week.

Nevertheless, this information continues to exert pressure on the crypto market, significantly affecting investor sentiment. The price of SOL has dropped by 5% during the week and is trading around $22.09.

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Chi Do
Chi Do
Chi Do is a content writer at CoinMinutes, responsible for creating most of the content on the website, including news related to Bitcoin (BTC), Ethereum (ETH), Blockchain, Decentralized Finance (DeFi), and more. With a keen interest in cryptocurrencies since the 2020s, Chi has acquired extensive experience and knowledge in this field. Chi holds a Bachelor's degree in communication from Academy of Journalism and Communication in Vietnam.

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