FTX Estate, the estate overseen by a bankruptcy trustee, has shown its bullishness towards Solana’s native token SOL by staking over 5.5 million SOL coins on October 13. The transaction was detected by blockchain tracker Whale Alert and later identified as an FTX Estate address by on-chain researcher Ashpool. The staked coins are worth $122 million and represent only a small fraction of FTX’s overall holdings of SOL.
Staking involves locking up a specific amount of coins for a set period of time, and in return, staking holders receive SOL coin rewards for securing the network with their stakes. As an early investor in Solana, FTX receives a significant volume of unlocked SOL coins every month according to a vesting schedule. However, FTX Estate has the option to liquidate these holdings at any time.
In September, concerns arose among SOL holders when a US court approved the sale of $1.3 billion in SOL from FTX. To avoid negatively impacting the crypto market, the court mandated that the sale occur through an investment adviser in weekly batches. This decision caused the price of SOL to drop to a two-month low of $17.34 on September 11.
FTX holds a total of $3.4 billion in Digital Assets A, which includes the top 10 assets the company possesses, such as Solana, Bitcoin (BTC), Ether (ETH), Aptos (APT), and other cryptocurrencies. Since filing for bankruptcy protection in November, FTX has managed to recover over $7 billion, according to court filings from September.
It is worth noting that Sam Bankman-Fried, the co-founder of FTX, is currently on trial at a district court in Manhattan, facing allegations of fraud and conspiracy to commit fraud. If found guilty, he could potentially be sentenced to up to 115 years in prison.
In a volatile market, protecting one’s crypto assets is crucial, and industry experts and Bitcoin OGs have shared their insights on how to do so. It is important to stay informed and take necessary precautions to safeguard one’s investments.
Overall, FTX Estate’s decision to stake millions of SOL coins demonstrates its confidence in the future of Solana and further reinforces its position as a major player in the cryptocurrency market. As the bankruptcy proceedings continue and the trial against Sam Bankman-Fried progresses, the industry will closely watch for any developments that may impact FTX and the broader crypto market.