- FTX estate commits to staking 5.5 million SOL coins, valued at $122 million.
- Decision assuages concerns over potential sell-off of substantial Solana holdings by the estate.
A Bold Move on the Blockchain
In a notable move earlier today, the FTX estate allocated a significant portion of its Solana (SOL) holdings, over 5.5 million coins worth $122 million, to staking on the Solana blockchain. This was discerned from on-chain data provided by SolanaFM. The involved wallet, confirmed to be under the FTX estate’s management, collaborated with Figment, one of Solana‘s esteemed network validators, for this staking initiative.
For the uninitiated, staking in blockchain parlance refers to the act of holding and locking up a cryptocurrency in a wallet to support the operations of a blockchain network. It is often seen as a mark of confidence in the blockchain’s future potential.
The FTX estate, which encapsulates the assets and obligations of the exchange during its bankruptcy declaration, is managed by a bankruptcy trustee. The trustee’s pivotal role revolves around ensuring that assets are recuperated and equitably disseminated to the owed parties.
Balancing Between Staking and Liquidation
There’s an inherent rhythm to the release of SOL tokens attributed to the FTX estate. A predetermined vesting schedule sees a consistent release of these tokens monthly. This has, in the past, fanned speculations among the crypto community. The looming question: Would the FTX estate capitalize on these tokens by liquidating them, thereby potentially affecting Solana’s market stance?
However, the estate’s recent decision to stake a substantial portion seems to allay these apprehensions, indicating a level of trust in Solana’s long-term viability.
Furthermore, documentation from a court proceeding in September 2023 revealed that the FTX estate has made significant recoveries amounting to approximately $7 billion in assets. This hefty sum comprises over $1 billion predominantly in staked Solana tokens and a commendable $560 million in Bitcoin. Not restricting itself to digital assets, the estate also boasts of tangible real estate assets in the Bahamas, valued at $200 million, and a further $1.9 billion in non-liquid assets.
In related news, the once head of the now-defunct exchange, Sam Bankman-Fried, is currently embroiled in legal proceedings over allegations of fraud.