FTX Reorganizing Team Still Has 41 Million Locked SOL Awaiting Liquidation, Worth Approximately $7.7 Billion, and It Seems to Continue to Attract Great Interest from Institutional Investors Even Though They Will Not Be Fully Unlocked Until 2028.
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41 Million Locked SOL Waiting for Sale
Galaxy Trading Fundraising Auction
Debt Conversion Price for SOL Still $16?
41 Million Locked SOL Waiting for Sale
The Block
Citing nine sources, the FTX reorganizing team previously selected Galaxy Asset Management as the agent for token liquidation, and Galaxy is currently negotiating and bidding for a large amount of locked SOL tokens with various parties.
In mid-September last year, the US bankruptcy court ruled that the cryptocurrency exchange FTX could sell up to $200 million worth of cryptocurrency assets per week with the assistance of Galaxy, or use them as collateral to hedge against its own cryptocurrency holdings in order to repay creditors.
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Neptune Digital is the first company to publicly announce that it has acquired locked SOL from FTX, claiming to have purchased 26,964 SOL at an average price of $64, with 20% of the tokens to be unlocked in March next year and the remaining tokens to be unlocked monthly until 2028.
Galaxy Trading Fundraising Auction
Galaxy Trading is one of the funds that raised funds from investors to bid on a portion of SOL. Three sources revealed that the average price was also $64, and the fund charges a 1% management fee, with BitGo as the custodian institution.
Galaxy Trading will also distribute staking rewards based on the investors’ allocations, but currently the rewards will be locked in sync with SOL.
Two other sources revealed that Galaxy Trading’s purchasing quota was eventually reduced by 13% because the FTX reorganizing team still has the final say on the allocation quota, and there is still remaining quota available for subscription.
Debt Conversion Price for SOL Still $16?
FTX currently considers the fiat value of the debt holders’ holdings in FTX in November 2022 as the price for the so-called “full compensation.”
However, FTX’s 41 million SOL was worth $5.4 billion at the beginning of March this year and is now approaching $8 billion, and according to a letter from Kroll, the bankruptcy processing company, received by FTX debt holders, the conversion price for SOL is still $16.24.
If the debt holders’ SOL remains at a conversion price of $16, where will the extra $3 billion go after liquidation?
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Pantera intends to purchase SOL from the FTX reorganization party, with the option to pledge and receive a 50% discount, with a lock-up period of four years
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FTX
Galaxy
SOL
Solana
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