FTX exchange offloads Solana at big discount, raising $1.9B amid creditor repayment efforts

FTX exchange divested a substantial percentage of its Solana (SOL) assets following bankruptcy in order to settle debts with creditors, causing apprehension among investors on the potential repercussions on the market.

The court-sanctioned auction generated $1.9 billion through the sale of 30 million SOL tokens to prominent investors, such as Galaxy Trading and Pantera Capital.

In addition, the tokens that have been sold are restricted from being accessed until January 2028. FTX, the company, now possesses 21 million SOL tokens, which are estimated to be worth over $3.75 billion.

Despite the adverse consequences of FTX’s collapse in 2022, Solana has made a remarkable rebound, with a substantial 332% surge in DEX trading volume and a 97% growth in market cap in the previous quarter.

These figures demonstrate Solana’s growing significance in the cryptocurrency ecosystem.

Two weeks ago, Sam Bankman-Fried or SBF, the ex-CEO of FTX, has received a 25-year jail term for his involvement in the downfall of the crypto exchange.