- 178k SOL ($28 million) has been redeemed and moved out of the Solana Proof-of-Stake network following reports that FTX is preparing to repay distressed customers.
- Meanwhile, victims have accused FTX bankruptcy lawyers of prioritizing clients over creditors for previously selling 30 million SOL to VC firms at a huge discounted rate.
A wallet associated with the bankrupt exchange FTX and its sister company Alameda Research has just redeemed 178,631 Solana (SOL) ($28 million) from the Solana network according to data shared by Wu Blockchain. Fascinatingly, the FTX wallet still holds a significant position in Solana with 7.09 million SOL ($1.107 billion) remaining staked on the network.
The SOL staking address of FTX/Alameda redeemed 178,631 SOL (US$28 million) today, most of which are expected to flow into Coinbase or Binance. The SOL of this address is redeemed and transferred out about 170k SOL on the 12th to 15th of each month. Currently, there are 7.09…— Wu Blockchain (@WuBlockchain) October 15, 2024
Delving Into FTX’s Transactions
According to our investigation, about 170k SOL is usually redeemed and transferred out of the network to Centralized Exchanges, including Binance and Coinbase, on the 12th to 15th of every month. On September 12 for instance, 177,693 SOL (worth $23.75 million at that time) was redeemed and moved out of the Solana’s Proof-of-Stake (PoS) network as we reported.
These transactions follow a recent court order for the bankrupt company to repay distressed customers up to $16 billion in credit. However, fears have started “building up” among investors as a section of the Solana community raised concerns about a potential market impact. Meanwhile, our research shows that FTX is one of the largest holders of SOL. According to some market experts, it is likely that FTX has already sold a significant share of its holdings through Over-The-Counter (OTC).
Investigating this further, we came across other sources, including Bloomberg’s report confirming that the bankrupt entity has transferred between 25 million and 30 million SOL, which was initially under lockup to investors with about $1.9 billion already amassed.
The Issues With the SOL Transactions
Multiple FTX creditors have publicly criticized the decision of the defunct company to sell its SOL holdings to crypto venture firms at a significant discount. Around the first week of April, FTX was reported to have offloaded about 30 million SOL to VC firms like Pantera Capital and Galaxy Trading at a rate of $64 per coin. Meanwhile, SOL was trading around $174 at that time, signifying a substantial markdown from the current price.
One of the victims, Sunil Kavuri, pointed out that this decision destroys “billions of value for FTX creditors.” Sunil also accused the bankruptcy lawyers Sullivan & Cromwell of prioritizing the clients over creditors.
Amid the backdrop of these transfers, SOL was trading at $154 at press time after surging by 1.9% in the last 24 hours and 7.76% in the seven days.
According to analysts, SOL’s 30-period moving average has moved above a 200-period average to form a golden cross. On top of that, its resistance and support levels are converging on each other, signifying a significant push.
For analysts identified as Crypto Curb, there is a huge bullish pennant continuation pattern.
Mentally Prepare yourself for the Greatest Year of your Life. 225+ Days of Reaccumulation on $SOL. Massive Pennant Bullish Continuation Pattern. Solana Send Season is coming soon.
Interestingly, this bullish thesis alludes to our $180 price prediction of SOL which was explained to be fueled by five main factors.
