Pantera Capital Wins Bids for Locked Solana Tokens in FTX Estate Auction
Pantera Capital Wins Bids for Locked Solana Tokens in FTX Estate Auction
In a recent turn of events, Pantera Capital, the first crypto fund in the U.S., has emerged as one of the winners in the FTX estate auction for 41 million locked Solana tokens. Bloomberg reported today that Pantera, along with other bidders, secured 2,000 SOL tokens in the auction.
FTX, once a prominent cryptocurrency exchange, declared bankruptcy in 2022, leaving its crypto holdings locked. Among these holdings, Solana (SOL) accounted for a significant portion, with over 41 million tokens up for liquidation.
The SOL tokens being sold by the FTX estate are subject to a pre-agreed vesting period, restricting their immediate trading in the market. However, these tokens will gradually become available over the next four years.
Institutional investors have shown a keen interest in acquiring these SOL tokens at a discounted rate. Pantera Capital, with $5.2 billion in digital assets under management, has been actively pursuing the opportunity to purchase up to $250 million worth of locked Solana from the estate since early March.
Pantera’s successful bids in the auction, along with Galaxy Digital, have raised eyebrows in the crypto market. The tokens were sold at a price higher than the previous auction, although the exact amount remains undisclosed until the sale information is made public.
The FTX estate auction has stirred up the crypto market, with concerns about FTX’s debt repayment capacity and allegations of creditor rights violations. The four-year locked sale terms have also impacted Solana’s market stability, showcasing the inherent volatility and risks associated with cryptocurrency investments.
Following the news, Solana’s price experienced a 2.3% retracement, reflecting a negative sentiment among investors. However, some view this development as a bullish indicator for Solana’s future, with major players like Pantera Capital expressing renewed confidence in its long-term performance.
As more auctions are expected in the future, the crypto community eagerly awaits further updates on the FTX estate auction and its implications on the market.
