The FTX exchange has initiated the movement of 750,000 Solana (SOL), which is valued at around $30 million, to crypto exchanges Binance and Kraken.
This move is the initial step in preparation for a potential sale, and it has had a notable impact on the token’s price, causing a 5% drop over a 24-hour period.
The FTX estate, previously a cryptocurrency exchange, has already shifted a total of $102 million in SOL to various exchanges through a series of transactions. This series of movements is creating selling pressure on the token.
SOL holds a significant place on the FTX estate’s balance sheet, with a value of just over $1.16 billion. While SOL has witnessed impressive growth, surging nearly 70% in the last month and registering a 10% year-on-year increase, it has faced a recent setback.
As the anniversary of the FTX collapse approaches, the price has dropped by 15% from a 14-month high, indicating that a recent rally might be losing momentum due to the looming sell pressure.
It’s important to note that unstaking and transferring tokens to exchanges is typically the first step in the process of liquidating assets, although the estate hasn’t made any sales as of yet.
It’s worth mentioning that earlier this year, the Securities and Exchange Commission (SEC) raised concerns by alleging that Solana might be classified as a security.
However, market volatility eased when the Solana Foundation publicly disputed the SEC’s allegation. Furthermore, Ripple secured a partial victory in a separate case against the SEC, a development that legal experts noted as a setback in the commission’s broader crackdown on cryptocurrencies.