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FTX Estate Advances Sale of Locked Solana Tokens, Attracting Robust Bids

Detailed overview of the auction process

The FTX estate's latest auction of locked Solana tokens is drawing substantial bids, highlighting robust demand as the estate liquidates part of its cryptocurrency holdings.

Key takeaways:

  • The FTX estate is in the final stages of its second tranche of Solana token sales, attracting bids around $100.
  • A total of 1.8 million SOL, valued at approximately $232 million, is being offloaded in this auction.

The FTX estate is currently wrapping up its second series of sales involving locked Solana tokens, with bids reported to be in the vicinity of $100 each, according to five insider sources. This auction, involving 1.8 million SOL tokens worth an estimated $232 million, has been ongoing for the past few weeks. Final bids were placed on April 25, with the necessary KYC verifications and completion of paperwork expected today.

Bidding prices for the locked Solana tokens ranged between $85 and $110. According to three sources, successful bids were predominantly priced at $95 and higher, though there was skepticism among two sources about bids as low as $85 being accepted. A bid price of $95 reflects a 26% discount on the current market value, whereas $110 represents a 15% discount.

Investment interest and future auctions

Galaxy Trading and Pantera Capital were notable participants in this round. Galaxy Trading was actively raising funds, targeting minimum investments of $5 million, indicating a more selective investment approach this time around. Bloomberg reported that Pantera Capital had increased its holdings of locked Solana, which comes with a four-year vesting period.

The next auction is scheduled to start on May 1, spearheaded by Figure Markets CEO Mike Cagney. Figure Markets is setting up a special purpose vehicle specifically for this auction, aiming to attract non-U.S. and accredited U.S. investors through its investment vehicle.

The robust demand observed in the March auction, where locked tokens were sold at $64 each, seems to continue as recent auctions have fetched even higher prices.