Bankrupt crypto exchange FTX will be liquidating its crypto assets worth $3.4 billion. This has caused a lot of uncertainty and fear in the crypto market, especially for Solana (SOL), which is one of the main assets held by FTX. Solana’s price fell by 7% yesterday after some rumors circulated about the situation.
FTX will appear in court on Wednesday, September 13, in Delaware, where it will seek approval for the liquidation process. The liquidation will involve SOL, FTT, BTC, ETH, and other crypto assets that FTX owns.
FTX’s Bankruptcy Continues to Haunt the Crypto Market
The crypto market is facing a lot of uncertainty and fear due to FTX’s decision. The liquidation could cause a lot of selling pressure on the market, which is already struggling with volatility and low liquidity.
FTX owns a large number of crypto assets, including $685 million worth of Solana (SOL) tokens, $529 million worth of FTT tokens, $268 million worth of Bitcoin (BTC), $90 million worth of Ethereum (ETH), and other assets such as Aptos, Dogecoin, Polygon, XRP, and stablecoins. These assets were valued as of January 17, according to FTX’s bankruptcy filing.
The price of Solana (SOL), the main asset of FTX, dropped sharply yesterday. This was mainly due to a rumor on crypto Twitter (X) that FTX was going to sell a large amount of SOL. However, this rumor was not true.
A screenshot that was posted on Twitter showed the assets that FTX debtors had as of January 17, 2023. The screenshot revealed that FTX had about 47.51 million SOL.
The FTX debtors have a large amount of Solana (SOL) tokens, but they cannot sell them quickly. Many people did not notice an important detail. An agreement locks up the SOL tokens that FTX debtors have.
FTX and Alameda had bought 16% of the SOL supply from the Solana Foundation before. This purchase had a condition: a lockup schedule. The 47.51 million SOL that FTX debtors have now, which is 8.82% of Solana’s total supply, is under this condition.
Due to this agreement, it is safe to say that any rumor that FTX will be dumping SOL soon is false and misleading.