FTX wallet unstakes $28m in Solana, sparking fresh selloff fears

FTX may be preparing to divest more of its Solana holdings after its decision to buy back shares of more tokens sparked fears of a fresh selloff.

According to data from Solscan, 178,631 Solana (SOL) tokens have been used from FTX’s staking address and are expected to be transferred to multiple wallets; Most of these are expected to eventually flow to major exchanges like Binance and Coinbase.

This pattern is consistent with FTX’s regular SOL transfers, which generally occur between the 12th and 15th of each month.

Meanwhile, the address still holds 7.09 million SOLs worth over $1.1 billion, triggering fears of another sale.

This latest move is part of FTX’s process of liquidating its massive cryptocurrency holdings. Since its 2022 crash, the stock market has been slowly shedding assets to repay creditors. A Delaware judge approved the cash refunds earlier this month.

According to a Crypto.news report, FTX and its trading arm Alameda Research transferred more than 13 million SOLs to crypto exchanges during the two months leading up to December 2023. Notably, last November, the company mined and moved $160 million worth of SOL tokens. .

Reports from April 2024 confirmed that the company sold over $1.9 billion on Solana at a steep discount in a desperate attempt to raise funds. Sources also suggested that they planned to sell more Solana tokens via blind auction, with the sale reaching a total of $2.6 billion in May.

FTX’s sale of SOL is part of a broader effort to liquidate its assets as part of the bankruptcy process. In September 2023, a court gave the green light to FTX’s plan to cash out $100 million a week in cryptocurrency, with the possibility of increasing that amount to $200 million if necessary.

FTX’s remaining crypto assets, which include other major holdings such as Ethereum (ETH) and Polygon (MATIC), are expected to continue to be sold in an attempt to recover billions of dollars owed to creditors.