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Solana falls 6% amid fears of FTX dump — but there's a catch

4e7f2679-ecd5-4b5c-bdea-d10d6be744d6.jpg

The price of Solana has plunged as the market fears a large FTX sell-off, however, it seems unlikely that the now-defunct exchange will dump all of its holdings at once.

The price of Solana (SOL) has plunged more than 6% the last 24 hours, amid fears that bankrupt crypto exchange FTX may soon liquidate its significant portions of the token and other Solana-affiliated crypto assets.

d30aec64-2916-4ad3-8d58-c0cff3c3ca45.pngThe price of Solana has fallen 6% to $18.38 in the last 24 hours. Source: CoinGecko

According to a combination of data from Solscan, which has added up the value of the three publicly available FTX cold storage wallets, the FTX estate holds a combined $1.5 billion in crypto assets on the Solana network.

Of that weighty figure, Solana tokens account for just $128 million.

The rest of the amount is comprised of numerous Solana-based altcoins such as Wrapped Bitcoin (WBTC), Maps token (MAPS), Serum (SRM) and a number of other tokens colloquially referred to as “Sam coins” — a jest at the former FTX CEO Sam Bankman-Fried.

The total sum of Solana-based tokens on FTX Cold Storage #1 wallet. Source: Solscan

Still, the idea that liquidators may soon unleash $128 million worth of SOL and hundreds of millions worth of other SOL-affiliated tokens onto the market hasn’t inspired much confidence in the market.

A number of users took to X (formerly known as Twitter) to voice their concerns over the impending sell-off. “FTX about to dump $680 mil worth of SOL 👀” wrote one user. “SOL is going to dump hard after FTX sells its bag, going to reach 14$ soon,” said another.

Others have instead urged calm, as the bankruptcy plan actually restricts how much can be sold off at once

According to FTX bankruptcy filings, the proposed plan for the liquidation of FTX’s assets imposes a series of conditions on the sale of tokens.

On Aug. 24, FTX proposed to appoint Mike Novogratz’s Galaxy Digital Capital Management as the investment manager that would oversee the sales of its recovered crypto holdings.

In this plan, the FTX estate would only be permitted to sell a maximum of $100 million worth of its tokens each week, however, that limit could be raised to $200 million on an individual token basis.

These limits have been introduced in a bid to minimize the impact of token sales on the broader market while still allowing for FTX to make creditors whole.

The FTX collapse and consequently biggest black swan Solana ever endured put SOL at $8

And we're worried about ~$600M that will be sold over the course of the next 5 years?

Some Major L1s have higher inflation than this and no one cares.

— Gumshoe (@0xGumshoe) September 10, 2023

Notably, the plan has not yet been signed off on by the courts, however, the plan and a number of other matters related to the FTX token sales are expected to come before the Delaware Bankruptcy Court on Sept. 13.

Related: FTX wallet shifts $10M in crypto, sparking fear of token dumps to come

In an April 12 hearing, FTX disclosed that it had recovered roughly $7.3 billion in liquid assets, with $4.8 billion of that sum being comprised of assets recovered as of November 2022.

Overall however, according to documents raised in the hearing, FTX held a total of $4.3 billion in crypto assets available for stakeholder recovery at market prices as of April 12.

FTX assets available for stakeholder recovery as of April 12. Source: Sullivan and Cromwell

At the time of publication, Solana is changing hands for $18.38 apiece, down nearly 11% for the week.

BitCulture: Fine art on Solana, AI music, podcast + book reviews

Source

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  • 15.10.25 18:07 crypto

    Cryptocurrency's digital realm presents many opportunities, but it also conceals complex frauds. It is quite painful to lose your cryptocurrency to scam. You can feel harassed and lost as a result. If you have been the victim of a cryptocurrency scam, this guide explains what to do ASAP. Following these procedures will help you avoid further issues or get your money back. Communication with Marie ([email protected] and WhatsApp: +1 7127594675) can make all the difference.

  • 15.10.25 21:52 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 15.10.25 21:52 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

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