FTX's bankruptcy estate is preparing for a pivotal move by auctioning off a significant amount of Solana (SOL) tokens. This strategy is part of FTX's liquidation process, which began following its bankruptcy in November 2022.
The upcoming auction, which differs from previous fixed-price sales, is a strategic shift that signals a potential shift in market dynamics.
Will the cryptocurrency community participate in Solana auctions?
Previously, 25 to 30 million SOL tokens were sold, generating approximately $1.9 billion in revenue. The price at the time was $64 each, a 60% discount from the market price. However, this discount came with the condition that the buyer had to freeze the SOL for four years.
“You’re basically exchanging time for a discount. You have to lock up your capital for four years, but you can buy the tokens much cheaper,” says Caladan’s Eva Wong.
The decision to opt for an auction this time could impact Solana's market price by encouraging competitive bidding. Figure Markets CEO Mike Cagney has confirmed the auction, but final details are still being kept under wraps.
Read more: How to Buy Solana (SOL) and Everything You Need to Know
Cagney's Figure Market is developing a special purpose vehicle (SPV) to encourage the cryptocurrency community's participation in auctions. This mechanism is designed to attract both non-US and accredited US investors. This allows you to participate in community consensus to determine bid prices and manage subsequent investments.
The auction format has the potential to influence Solana's price trends by heightening bidding enthusiasm.
Solana's price trend is currently on the rise. After reaching a high of $210 on March 18, the price of Solana fell by more than 44%, hitting a low of about $116 on April 13. Nonetheless, it rebounded and rose nearly 30% from its low.
This recovery is significant as Solana tests key resistance near $156. This level is very important as it is an important Fibonacci retracement point.
If Solana maintains its position above $156, it could rise 22% to around $185 and reach the 0.786 Fibonacci level. Conversely, if this barrier is not overcome, support may be found at $145.56.
Read More: Solana (SOL) Price Prediction 2024/2025/2030
“At $148, Solana is massively undervalued,” said Dan Borovic of Lolbit.
Trusted
The information contained on the BeInCrypto website is published in good faith and for informational purposes only. Users are solely responsible for any consequences arising from their use of information on the website.
In addition, some content is an AI-translated version of the English version of BeInCrypto articles.
