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Over the final weekend, the Solana (SOL) price got here below main promoting strain with its value slipping below $18.50 ranges lately. This is as a result of Solana traders have turned anxious that crypto traders might dump their Solana holdings after the FTX listening to in Delaware Bankruptcy Court on Wednesday, September 13.

Reportedly, FTX is looking for approval for its liquidation of $3.4 billion in SOL, FTT, BTC, ETH, and different crypto asset holdings. Crypto trade FTX held Solana as a significant a part of its reserves. However, they bought SOL in big portions when the trade crashed final yr in November 2022.

Of the whole $3.04 billion in crypto property held by FTX, Solana constitutes the lion’s share. As of January 17, FTX’s cryptocurrency holdings had been estimated to consist of roughly $685 million in Solana (SOL) tokens, $529 million in FTT tokens, $268 million in Bitcoin (BTC), $90 million in Ethereum (ETH), together with a spread of different property, together with Aptos, Dogecoin, Polygon, XRP, and numerous stablecoins.

Will FTX Really Sell Solana Holdings?

However, many individuals appear to have neglected a big detail. The SOL tokens held by FTX debtors usually are not instantly out there on the market. In distinction to the impression conveyed by the shared visible information, these SOL tokens are topic to a lockup settlement. FTX, together with Alameda, had beforehand obtained 16% of the SOL provide immediately from the Solana Foundation.

This acquisition got here with sure situations, primarily a lockup schedule. The present holding of 47.51 million SOL, which represents 8.82% of Solana’s eventual whole provide, is certain by this settlement.

Hence, the false impression that this SOL reserve is instantly tradable and poised for a market sell-off is basically incorrect. The truth is that these tokens are locked and can observe a linear vesting course of spanning from 2025 to 2028.

According to the phrases of the settlement, the SOL tokens will expertise gradual month-to-month releases till January 2028. Furthermore, particular tranches, resembling the 7.5 million SOL acquired from Solana Labs by Alameda Research, will solely grow to be accessible on March 1, 2025. Another tranche of 61,853 SOL is ready for unlocking on May 17, 2025.

Thus, there’s little motive for traders to panic amid all the FUD round Solana at this level.

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Bhushan is a FinTech fanatic and holds a very good aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in direction of the new rising Blockchain Technology and Cryptocurrency markets. He is repeatedly in a studying course of and retains himself motivated by sharing his acquired information. In free time he reads thriller fictions novels and typically discover his culinary expertise.

The offered content material could embrace the private opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any accountability on your private monetary loss.