FTX and Alameda Research have unlocked over 3 million SOL tokens, equivalent to $431 million, continuing the liquidation of their digital assets.
The liquidation is overseen by the court, with a weekly cap of $50-100 million, avoiding an immediate massive sell-off.
This gradual sale could weigh on the price of Solana, but the restrictions limit the risk of a sudden market collapse.
A Massive Unlocking of SOL by FTX and Alameda Wallets
Wallets belonging to bankrupt entities FTX and Alameda Research recently unlocked over 3 million SOL tokens, valued at an estimated $431 million in Solana. This is their largest unlocking of SOL since November 2023, when these companies began gradually liquidating their digital assets.
The operation, detected by blockchain analysis firm Arkham, is part of a series of ongoing sales orchestrated by the bankrupt structures. Shortly after the unlocking, approximately 25,000 SOL, equivalent to $3.3 million, was deposited on Binance, indicating further sales to come.
A Liquidation Overseen by the Court
Although FTX and Alameda have released over $400 million in SOL, the sale cannot be executed in a single transaction. In September 2023, the Delaware Bankruptcy Court imposed strict caps on digital asset sales held by the bankrupt exchange.
According to this decision, the assets can be liquidated by an investment advisor with a $50 million limit during the first week, and $100 million per week thereafter. A cap of $200 million can be authorized upon request, but requires specific judicial approval.
Since November 2023, FTX and Alameda have gradually unlocked 7.83 million SOL, representing approximately $986 million. According to Spot On Chain, these tokens were sold on Coinbase and Binance at an average price of $125.80 per unit, making it one of the largest SOL liquidation flows in the market.
FTX Repays Some of Its Creditors
This massive unlocking comes as FTX continues the partial repayment of its former clients. On February 18, the platform began redistributing approximately $1.2 billion in digital assets to users affected by its collapse.
However, these repayments do not benefit all creditors. On February 21, Sunil Kavuri, one of the main advocates for affected clients, revealed that at least 163 jurisdictions were excluded from the distributions. FTX claims to be examining possible solutions to address this situation, but many investors are still awaiting a resolution.
What Impact for Solana and the Crypto Market?
The extent of the SOL liquidation by FTX and Alameda remains a concern for the market. A too rapid sale of these assets could exert significant downward pressure on the price of Solana, especially as more batches of tokens could be unlocked in the coming months.
In an already volatile market, these massive sales could affect liquidity and investor confidence, although the restrictions imposed by the court limit the risks of a sudden collapse in the SOL price. It remains to be seen whether these movements will continue at a steady pace or if some assets will be held in anticipation of better market conditions.
