Bankrupt crypto platform FTX is set to sell a large quantity of locked Solana tokens via an auction system, attracting the attention of investors willing to bet on discounted offers despite the inherent risks.
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FTX opts for a new sales strategy to liquidate its remaining SOLs
After successfully concluding a private sale of Solana tokens worth $1.9 billion, FTX now decides to use an auction system to liquidate the remainder of its substantial portfolio.
Mike Cagney, managing director of Figure Markets, a decentralized platform designed for traders and investors, has confirmed that an auction will soon take place, although precise details remain confidential for the time being.
The decision by FTX s decision to opt for an auction system was prompted by the keen interest shown by potential buyers, including leading industry players such as Galaxy Digital and Pantera Capital.
Figure Markets plans to create a dedicated investment vehicle (Special Purpose Vehicle or SPV) to enable international investors, as well as accredited US investors, to participate in these auctions. This initiative has been welcomed by some of FTX.
The use of an auction process could encourage greater competition between bids, which could influence the market price of Solana.
At the time of the recent sale of two-thirds of the Solana tokens held by FTX has raised $2.6 billion with a unit price of around $60 per token. This is well below the current Solana price of around $150.
A risky bet, but potentially lucrative for investors?
Investor interest in these locked Solana tokens is driven by the prospect of discounted purchases, even if the tokens can only be resold at a later date. Despite the inherent risk associated with the volatile nature of cryptos, which can significantly alter earnings projections once the tokens are unlocked, the potential rewards remain significant.
The outcome of this auction will therefore be closely watched by investors, as it could have a significant impact on the future trajectory of Solana’s price.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
