StakingMarketRegulationCryptostake ExplainsUncharted
FTX to Sell the Portion of Its Vast Solana (SOL) Holdings via Auction

FTX’s upcoming Solana auction details, and previous sales

FTX's estate is preparing to auction its next lot of locked Solana tokens, following substantial interest from investors and significant gains from previous sales.

Key takeaways:

  • FTX will conduct an auction for its next batch of locked Solana tokens, following a prior sale that fetched $1.9 billion.
  • Strong buyer interest continues as investors seek to capitalize on discounted rates for the locked tokens.
  • Special investment vehicles are being set up to facilitate participation by non-US and accredited US investors.

According to Mike Cagney, CEO of Figure, the FTX estate's next disposal of Solana tokens will be conducted through an auction, diverging from the previous method of direct sales. This change comes after FTX successfully sold $1.9 billion worth of Solana tokens to major industry players like Galaxy Digital and Pantera. 

The prior sale involved approximately two-thirds of FTX’s Solana holdings, netting $2.6 billion at about $60 per token—a significant profit given Solana’s current market price of around $150. This strategic shift to an auction format aims to capitalize on the high demand and potentially maximize returns from these assets, which are part of the largest percentage of digital assets held by FTX at the time of its collapse.

Investment interest and strategies for upcoming auction

The locked Solana tokens continue to draw significant interest from potential buyers, encouraged by the potential for high returns despite the inherent risks associated with their locked status and the volatile nature of cryptocurrency markets. To facilitate participation, Figure Markets, led by Cagney, plans to establish a Special Purpose Vehicle (SPV) designed for non-US investors and accredited US investors. 

This move has been lauded by prominent creditor Sunil Kavuri and reflects a growing trend of creating structured opportunities for sophisticated investors to engage in high-stakes cryptocurrency auctions. This approach not only broadens the investor base but also enhances the financial strategies employed by FTX’s estate to manage and liquidate its substantial cryptocurrency holdings effectively.