FTX-identified Wallet Stakes 5.5 Million SOL Coins
FTX estate, a major player in the crypto market, has shown its bullishness towards Solana's native token SOL. On October 13, an FTX-identified wallet staked over 5.5 million SOL coins, worth a staggering $122 million. The coins were sent to Figment, a staking validator firm catering to institutional investors. This move highlights FTX's confidence in the future of SOL.
Staking - A Lucrative Venture for FTX
Staking involves locking up a certain amount of coins for a specific period of time. In return, staking holders receive SOL coins as rewards for securing the network with their stakes. FTX's decision to stake such a significant amount of SOL coins demonstrates their commitment to supporting the Solana network and their belief in the potential growth of the token.
FTX Estate: A Key Player in the Solana Ecosystem
FTX has been an early investor in Solana, and this recent staking activity further solidifies their involvement in the ecosystem. As part of their investment, FTX receives a monthly release of SOL tokens according to a vesting schedule. This provides FTX with the flexibility to either hold or liquidate their holdings at any given time. The FTX estate is managed by a bankruptcy trustee, who oversees the recovery of assets for the exchange's creditors.
Concerns Surrounding the Sale of SOL
In September, a U.S. court approved the sale of $1.3 billion in SOL tokens from FTX. This decision raised concerns among holders about a potential slump in prices. To mitigate any negative impact on the crypto market, the bankruptcy court mandated that the sale occurs in weekly batches through an investment adviser. As a result, the price of SOL dropped to a two-month low of $17.34 on September 11.
FTX's Impressive Digital Asset Holdings
FTX currently holds a total of $3.4 billion in Digital Assets A, which includes Solana, Bitcoin (BTC), Ether (ETH), Aptos (APT), and other cryptocurrencies. Court filings from September reveal that over $7 billion has been recovered since FTX filed for bankruptcy protection in November last year. This highlights the significant progress made by FTX in reclaiming assets and strengthening its position in the market.
Sam Bankman-Fried's Legal Troubles
It's worth noting that Sam Bankman-Fried, the co-founder of FTX, is currently facing legal charges of fraud and conspiracy to commit fraud. The trial is taking place at a district court in Manhattan, and if found guilty, Bankman-Fried could potentially face a prison sentence of up to 115 years. This ongoing trial adds an additional layer of complexity to FTX's operations.
