FTX Estate Sells Remaining Discounted Solana Tokens

The FTX estate has managed to offload the last of its discounted Solana tokens, selling them to Pantera Capital and Figure Markets. This move is part of the defunct exchange’s attempt to compensate its creditors and former clients. Valued at a total of $2.6 billion, the Solana tokens were sold at the price of $102 each. This price is significantly lower than Solana’s current market value of $168 per token.

Figure Markets ended up purchasing 800,000 Solana tokens in this auction, while Pantera Capital acquired the remaining tokens. As part of the deal, FTX implemented a four-year vesting schedule for the tokens and coins that were sold. Despite the estate’s recovery of $7.3 billion in assets, not everyone agrees with the manner in which these efforts have been handled.

Sunil Kavuri, a creditor leading the FTX creditor community, criticized the bankruptcy estate for selling the assets at such a deep discount. He expressed his frustration by stating that Sullivan & Cromwell, the law firm handling the bankruptcy, has disregarded the property rights of creditors. Kavuri pointed out that a specific token sold for 11 cents is now trading at two dollars, and emphasized that FTX sold $10 billion in Solana tokens at a 70% discount.

Kavuri insists that the digital assets belong to the creditors and clients of the FTX platform. He condemns the actions of Sullivan & Cromwell, asserting that the assets should have been directly returned to the affected parties rather than sold off at reduced prices. This viewpoint resonates with numerous creditors who were impacted by FTX’s collapse, sharing a sentiment of distrust towards the law firm’s involvement in the bankruptcy process.

These grievances were taken to court, prompting an independent investigation into the actions of Sullivan & Cromwell. The investigation ultimately ruled out any collusion between the law firm and FTX, clearing them of wrongdoing. The discontent among creditors remains palpable.

Following the announcement of the bankruptcy auctions, Solana’s price fell by 4%. The alternative layer-1 network has shown resilience and continues to demonstrate strong price performance. Since November 2023, Solana’s value has been on a steady upward trend, reaching a peak of $210.

The recent sales and continued market activity indicate that while the bankruptcy has left a mark, the crypto asset and its community continue to forge ahead. Investors and analysts will likely continue to watch the developments in Solana’s market performance and its broader impact on the crypto sector.

While the FTX estate’s actions have sparked debate and dissatisfaction among creditors, the ongoing strength of Solana suggests that the cryptocurrency’s market potential remains robust. As the situation progresses, the balance between satisfying creditors and maintaining market stability will be crucial in shaping the future landscape of the cryptocurrency market.