FTX plans to sell millions of SOL: Another Solana crash?

FTX plans to sell millions of SOL: Another Solana crash?

Insolvent crypto exchange FTX plans to sell Solana to clear remaining arrears, financial entrepreneur Mike Cagney recently reported. Recently, FTX sold between 25 and 30 million SOL to institutional investors such as Galaxy Digital and Pantera Capital at a bargain price, bringing the exchange around $2 billion in proceeds. Despite the massive sell-off, this did not leave any mark on the Solana price.

Investors only paid $64 per SOL, even though the market value at the time was $172. The SOL cannot be sold immediately due to a waiting period of four years. New coins are released monthly and the last ones will only be available after four years. Now FTX plans to auction another 25 to 30 million SOL in an auction.

Mike Cagney recommends that interested parties take part in the auction as it could offer the opportunity to purchase severely undervalued SOL. Participation in the auction is open to investors worldwide and can be done not only with US dollars, but also with stablecoins such as USDC or cryptocurrencies such as BTC and ETH. The fact that FTX may be selling valuable Solana at a greatly undervalued value is causing discontent in the crypto scene and speculation about possible unfair dealings.

The Solana price has experienced fluctuating developments recently. After reaching a high of $210, the price fell by over 44% to a low of around $116. However, the price has since recovered by almost 30% and is now testing key resistance levels. The recovery is crucial as Solana attempts to clear the key Fibonacci retracement level at $156. With the volatility in the market and the upcoming FTX sale, there is an opportunity to trade SOL via the altcoin exchange CoinEx.