FTX dismisses $23m worth of SOL, potential Solana dump imminent?

A wallet associated with defunct crypto exchange FTX and its sister company Alameda Research has redeemed 177,693 Solana (SOL) tokens, valued at approximately $23.75 million, from the Solana Proof-of-Stake (PoS) network.

The move, highlighted by PeckShield in a September 12 post on X, has reignited speculation in the crypto community about a possible token sale.

Speculation increases after FTX/Alameda portfolio moves

Additional data from Solscan shows that the wallet in question, H4y…gFZ, still has 7.057 million SOLs, valued at around $954 million, currently staked.

This recent activity echoes similar moves in November and December 2023, when the same address removed significant amounts of SOL and transferred them to Coinbase.

It has sparked speculation in the crypto community about a possible sale, as market participants typically move their tokens to centralized exchanges (CEX) for settlement after withdrawing them.

However, some analysts believe that it may not have a significant impact on the price of SOL, as the unstaked amount is relatively small compared to the total holdings in the portfolio, which represents 1.5% of the circulating supply of the asset

In addition, any future sale of the FTX estate is expected to be conducted through over-the-counter (OTC) offers, reducing the likelihood of a strong market reaction.

Legal troubles continue for FTX executives

The timing of the discovery comes as FTX and its executives continue to face intense legal scrutiny. Former Alameda CEO Caroline Ellison is scheduled for sentencing on Sept. 24 after pleading guilty to all charges related to the exchange’s collapse.

Despite the legal drama and concerns over unlocking, the SOL price has remained largely stable, even rising 5% over the past 24 hours to $135. Moreover, the price of the token increases by more than 650% on the yearly chart.

After a remarkable performance in 2023, the fifth cryptocurrency has made more modest gains in 2024. After reaching a high of $209 in March, coinciding with Bitcoin’s new all-time high, it has experienced a downward trend. The price is currently stabilizing around $130, potentially setting the stage for a future bounce.

For the token to see significant price increases, several factors will need to align, including advances in network technology, the resurgence of meme coins, increased institutional investment, and potential ETF launches.

Rising interest in meme coins was a key factor in their rise to $200 in March. Should these catalysts materialize, market watchers believe there is a chance that its price will reach $1,000 by 2025.

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