The remaining trove of locked Solana tokens held by the bankrupt FTX exchange will be sold through an auction, shifting gears from the fixed-price transactions employed earlier. This decision, revealed by Mike Cagney, CEO of Figure Markets, reflects the estate's prioritization of maximizing returns for creditors amidst continued investor interest in Solana.
FTX's previous sale of locked Solana tokens, valued at $1.9 billion, saw participation from industry heavyweights like Galaxy Digital and Pantera. These tokens, however, come with a lockup period, meaning they cannot be freely traded until a predetermined date. Despite this restriction, the potential for significant rewards upon unlocking has fueled investor enthusiasm. Notably, the previous sale saw tokens offloaded at roughly $60 each, with Solana's current market price hovering around $150.
This shift to an auction format for the remaining tokens signifies a calculated move by the FTX estate. By pitting potential buyers against each other, the auction has the potential to drive up the final sale price compared to a fixed-rate offering. However, the inherent volatility of the cryptocurrency market adds a layer of uncertainty to this strategy. While a bidding war could see the token price soar, it's equally possible that bids fall short of expectations.
To facilitate broader participation in the auction, Figure Markets, led by Cagney, is planning to establish a Special Purpose Vehicle (SPV). This entity would allow not only accredited U.S. investors but also non-U.S. participants to vie for the locked Solana tokens. This move has garnered support from prominent FTX creditor Sunil Kavuri, who views it as a means to broaden the investor pool and potentially maximize returns.
The specific details surrounding the auction, including the exact number of tokens up for grabs and the timeframe for bidding, remain undisclosed. However, with the announcement of this new sales strategy, the FTX estate has signaled its intent to capitalize on the ongoing demand for Solana tokens while navigating the complexities of a bankruptcy process. The outcome of the auction will be closely watched by the cryptocurrency industry, with implications for both the future value of Solana and the ongoing efforts to settle FTX's outstanding debts.