Pantera Capital, the first crypto fund in the U.S., recently won some of the bids for the 41 million locked Solana tokens during an FTX estate auction. The auction, which took place this week, saw Pantera adding to their winnings along with other bidders as 2,000 SOL tokens were sold. FTX, one of the largest cryptocurrency exchanges of its time, declared bankruptcy in 2022, resulting in its crypto holdings being locked. The majority of these holdings consisted of Solana tokens, which are now being liquidated. The SOL tokens being sold are under a pre-agreed vesting period and will gradually become available over the next 4 years. Institutional investors are showing high demand for these tokens, eager to acquire Solana at a discount.
Pantera Capital, a prominent American hedge fund and venture capital firm managing $5.2 billion in digital assets, has been actively involved in the bidding process. Since early March, Pantera has been raising funds to create a fund specifically designed to purchase up to $250 million worth of locked Solana tokens from the FTX estate. They have been successful in winning some of the $2.9 billion worth of SOL tokens sold earlier this month, along with Galaxy Digital, at $64 each, which was significantly below the $178 trading price at the time. The exact price at which the tokens were sold during the recent auction has not been disclosed but is expected to be revealed once the sale information is made public. More auctions are anticipated in the future.
The FTX estate auction has caused a stir in the crypto market, with concerns being raised about FTX’s capacity to repay its debts and accusations of creditor rights violations. The four-year locked sale terms have led to dissatisfaction among certain parties, impacting Solana’s market stability and emphasizing the volatility and risks associated with cryptocurrency investments. Following the report of the auction results, Solana’s price experienced a 2.3% retracement, indicating a negative sentiment in the market. Further declines may occur as more details about the sales become available. Despite this, some view the news as a positive sign for Solana’s future, with major players in the industry displaying renewed confidence in its long-term performance.
The discounted sales of SOL tokens have raised questions about FTX’s ability to repay its debts and accusations of creditor rights violations. These concerns have led to dissatisfaction among some stakeholders and have impacted the market stability of Solana. The volatility and risks associated with cryptocurrency investments have been highlighted through this auction process. Although Solana’s price has retraced slightly following the report of the auction results, there is the possibility of further decline as more details are disclosed. However, some see this news as a positive indicator for Solana’s future, as it shows that major players in the industry have confidence in its long-term performance.
Institutional investors have shown high demand for the locked Solana tokens being sold by the FTX estate, as they provide an opportunity to acquire Solana at a discounted price. Pantera Capital, a leading American hedge fund and venture capital firm managing billions in digital assets, has been actively participating in the bidding process. Since March, Pantera has been raising funds to create a specific fund aimed at purchasing up to $250 million worth of locked Solana tokens from the FTX estate. They have been successful in winning some of the SOL tokens sold earlier this month, along with Galaxy Digital, at a price significantly below the market rate at the time. The exact price at which the tokens were sold during the recent auction remains undisclosed but is expected to be revealed soon as more auctions are anticipated in the future.
