FTX attracts institutional investors’ bidding with nearly $8 billion worth of SOL to be sold after four years of lock-up
FTX Reorganization Team Still Holds 41 Million Locked SOL Tokens Worth Approximately $7.7 Billion, which may not be fully unlocked until 2028, but it still seems to attract great interest from institutional investors.
Contents:
Toggle
41 million locked SOL tokens waiting for sale
Galaxy Trading raises funds through bidding
Is the conversion price for SOL still $16 for creditors?
41 million locked SOL tokens waiting for sale
According to nine informed sources, the FTX reorganization team previously chose Galaxy Asset Management as the agent for token liquidation, and Galaxy is currently negotiating a bidding process for a large amount of locked SOL tokens.
The U.S. bankruptcy court ruled in mid-September last year that the cryptocurrency exchange FTX could sell up to $200 million worth of cryptocurrencies per week with the assistance of Galaxy, or collateralize and hedge its holdings to repay creditors.
Advertisement – Continue reading below
Neptune Digital is the first company to publicly state that it has acquired locked SOL tokens from FTX. It claims to have purchased 26,964 SOL tokens at an average price of $64, with 20% of the tokens unlocking in March next year and the remaining tokens unlocking monthly until 2028.
Galaxy Trading raises funds through bidding
Galaxy Trading is one of the funds that raise funds from investors to bid on a portion of SOL. According to three informed sources, the average price is also $64, and the fund charges a 1% management fee, with BitGo as the custodian.
Galaxy Trading will also allocate staking rewards based on investors’ quotas, but the rewards are currently locked in synchronization with SOL.
Two other sources revealed that the purchase quota for Galaxy Trading was ultimately reduced by 13% because the FTX reorganization team still has the final decision-making power on allocation quotas, and there is still remaining quota that has not been subscribed.
Is the conversion price for SOL still $16 for creditors?
FTX currently uses the fiat value held by creditors at FTX in November 2022 as the price for the so-called “full compensation.”
However, FTX’s 41 million SOL tokens were worth $5.4 billion in early March this year and have now approached $8 billion. According to a letter received by FTX creditors from bankruptcy firm Kroll, the conversion price for SOL is still $16.24.
If the conversion price for creditors’ SOL remains at $16, where will the extra $3 billion go after liquidation?
(
Pantera plans to purchase SOL from FTX reorganizers, with the option to collateralize and a 50% discount, with a lock-up period of four years
)
FTX
Galaxy
SOL
Solana
Further Reading
Galaxy Founder: Dogecoin’s surge is like giving the middle finger to the financial system, $1.2 billion acquisition of BitGo
Shedding off the shadow of the malicious acquisition of STEEM! Tron DApps land on Samsung Galaxy Store
