Explore the transfer of 250,000 Solana (SOL), worth $13.54 million, from an FTX-connected wallet to Binance, potentially linked to a court-approved asset sale.
It was found today that 250,000 Solana (SOL) had recently been moved to Binance from a wallet connected to FTX. At the present currency rate, this is worth $13.54 million. It is most likely a part of the programme that the bankruptcy court has previously approved to sell assets for cash.
The price of Solana (SOL) and FTX sales
The price of SOL, the cryptocurrency that is a native part of the Solana ecosystem, has increased by 33% in the last week.
The rise reached its zenith on Saturday, November 11, when it hit $64.5.
The price somewhat declined over the next few days, coming in at $54.2.
It’s probable that sales connected to FTX are the exact cause of this retreat.
It is important to remember, though, that the price of SOL has increased by 444% since the start of the year, with a whopping +147% of that increase occurring in the previous thirty days alone.
But it’s important to put these motions in perspective in order to fully comprehend this amazing ascent.
The 2022 crash
In November 2021, the price reached an all-time high of $260.
The price has significantly dropped since then as a result of the speculative bubble popping. It had dropped as low as $170 in late 2021 and was down to $80 in March.
It crashed to $50 with the collapse of the Terra/Luna ecosystem, and then further to $30 in June following the bankruptcy of Celsius.
After FTX filed for bankruptcy in November of last year, it even fell below $12, and by late 2022, it had fallen as low as $9.8. By then, about 96% of the total from the peaks of the prior year had been lost.
Though not very strong, the year 2023 appeared to be off to a good start, rebounding to $26 in June before plunging down to $14.
Only in mid-October did the market start to really pick up steam, rising from $22 to above $60 in less than a month.
Even though the price has increased by +444% since the start of the year, the current $54 is still 80% behind the highs and only marginally higher than the $48 of August 2022 and the $58 of mid-May of last year.
FTX’s revenue
FTX’s portfolio included a large number of SOLs when it filed for bankruptcy in November of last year.
It has begun selling them for a few days now, and in September, it still owned around $1 billion of them.
The key takeaway is that he is making every effort to maximise the value of the assets he still has in his portfolio in order to generate the funds he needs to reimburse his creditors.
These repayments will be paid in fiat money, and only after the fiat repayments are completed may it be feasible to get your cryptocurrency back as well.
Therefore, it makes perfect sense that FTX is selling the SOL tokens that it still owns in its portfolio in order to profit on the recent spike in Solana’s price.
After all, SOL was only valued roughly $33 at the time of the November 2022 bankruptcy, before the price crash, whereas it is currently worth much more than $50.
Furthermore, it should be mentioned that Solana has never increased above $33 in 2023. This means that, even if FTX isn’t selling every SOL token in its portfolio, now is a great time for it to do so.
Furthermore, selling an excessive number of units in a short period of time is not conducive to FTX’s goal of preventing a price decline.
The exchange is better off selling at a price considerably above $33, so after perhaps causing a decrease from $60 to $54, it might even decide to temporarily cease. It might even decide to reopen sooner rather than later.
