FTX, the bankrupt cryptocurrency exchange, plans to sell off its last holdings of Solana’s native tokens, SOL, through an auction taking place this week.
Based on information from Bloomberg’s sources, the bankruptcy estate is planning to sell an undetermined quantity of SOL at auction in order to secure a better price than what could be achieved through individual sales.
FTX to Sell SOL Via Auction
An auction for the blonde assets signifies a change from the past practice of selling items at fixed prices by the bankruptcy estate. Many creditors have voiced their disapproval towards this method as it may lower the true value of FTX’s possessions, subsequently reducing the potential amount that creditors could recoup.
Recently, FTX has been selling large amounts of SOL directly, leading companies such as Pantera Capital, Neptune Digital Assets Corp, and Galaxy Trading (a subsidiary of Mike Novogratz’s Galaxy Digital) to take notice.
Last month, the bankruptcy estate of FTX sold between 25 and 30 million dollars worth of locked-up Solana tokens at a price of $64 apiece. This sale could have brought in up to $1.9 billion for the estate. The purchase appeared enticing, but the buyers acquired Solana tokens from FTX at a price that was 67% lower than the token’s value at the time. Although FTX has not yet revealed its Solana token sales for April, previous reports suggest that the asset had sold tokens worth approximately $2.6 billion.
Anonymous insiders have disclosed that the auction will conclude on Wednesday, April 24, and the winning bids will be revealed the following day, on Thursday.
Figure Markets Declares Interest
Figure Markets, a crypto exchange with known interest in the FTX SOL blind auction, has announced plans to set up a Special Purpose Vehicle (SPV) for participation in the bids. This SPV will be open to both non-U.S. and U.S. investors according to the company’s co-founder and CEO, Mike Cagney.
An SPV (Special Purpose Vehicle) will accept investments in US dollars and Circle’s USDC stablecoin. The bidding prices for the community consensus will be decided through a simple $1:$1 voting system. This investment opportunity stands out as it invites retail investors and FTX creditors to join, with a minimal investment threshold set at $5,000, significantly lower than the $5 million required for direct sales by the estate.
Sunil Kavuri, an activist creditor representing FTX, praised Cagney’s handling of the auction but expressed concern over Sullivan & Cromwell’s firm stance. The law firm in charge of FTX’s bankruptcy insisted on selling the locked SOL at a substantial discount to their clients, disregarding creditors’ protests.
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2024-04-24 23:34