FTX to Auction Off Locked Solana Tokens, Seeks Higher Price
FTX will be auctioning off its remaining Solana (SOL) holdings in an attempt to fetch a higher price than direct sales.
The bankrupt exchange's initial liquidation plan was to sell its $7.5 billion worth of SOL at fixed market prices. It began selling SOL last month at discounts. One transaction saw the sale of 26,964 SOL at $64 per token - 67% lower than market value at the time.
Figure Markets, a blockchain ecosystem that engages in auctions, is establishing a Special Purpose Vehicle (SPV) to facilitate participation from non-U.S. and accredited U.S. investors. $1 will equate to one vote. Parties can use USD, USDC, Bitcoin and Ether to participate.
Just got confirmation that the next round of locked #solana coins from the #FTX estate will be an auction, with exact details coming Monday. If you want in, join us. https://t.co/RuA41vgWAx
— Mike Cagney (@mcagney) April 20, 2024
Creditors have supported the auction-based approach compared to the fixed-price sale agreement.
Suni Kavuri, an activist representing some of the creditors, lauded the auction for offering a more accessible entry point for small investors; the minimum investment is $5K compared to $5 million.
S&C are adamant in selling FTX creditors locked Solana at a heavy discount to their own clients (Galaxy), despite our objections
— Sunil (FTX Creditor Champion) (@sunil_trades) April 21, 2024
I have spoken to @mcagney. He created a structure to allow retail FTX creditors to participate with a min. investment of $5000 vs. the $5m required… https://t.co/yut9Xub4O5
Earlier this month, Voyager Digital recovered $484.35 million through settlements from FTX, 3AC, and Directors and Officers (D&O) insurance. Some $450 million of the funds came from a settlement from FTX according to a recent filing.
Meanwhile, FTX founder Sam Bankman-Fried is appealing his 25-year prison sentence. SBF was handed the sentence in March for stealing $8 billion from FTX customers. He was convicted in November on seven counts of fraud and conspiracy.