FTX Stakes Millions of SOL, Amid Liquidation Fears

The estate of the now-defunct crypto exchange FTX has reportedly staked 5.5 million Solana (SOL) tokens, worth approximately $121 million USD.

This follows a court filing that highlights the substantial SOL holdings owned by the FTX estate.

FTX Stakes Solana Following Approval of Liquidation Process

A user on X (formerly Twitter) initially discovered the transaction, which is visible on Solana.fm under the wallet name ‘Alameda’.

The staked amount comprises 5.55 million SOL tokens, worth approximately $121.17 million.

Staking means that the tokens are locked up for a certain amount of time, in return for passive income, similar to a bank term deposit. The locked tokens actively contribute to sustaining the blockchain’s operation.

At the time of publication, SOL’s price stands at $22.03.

However, a recent court filing revealed that the estate of the now-defunct crypto exchange FTX holds a staggering amount of SOL, as its largest portion of digital assets. According to the court filing, it holds approximately $1.16 billion.

SOL holders found themselves in a state of uncertainty when the bankruptcy court approved FTX’s liquidation plan, including the $1.16 billion in SOL and roughly $2.5 billion in other crypto assets.

Meanwhile, the liquidation process adheres to stringent regulations. This is to prevent any adverse repercussions on the crypto market from a sudden, massive sell-off.

Instead, it was implemented in increments of $50 million per week, gradually ramping up to $100 million.

Meanwhile, SOL has hit record-breaking amounts in its total value locked (TVL) recently. On October 2, as BeInCrypto reported, it reached its highest levels in 2023, boasting a TVL of $338.2 million.

This marked significant excitement amongst avid members of the SOL crypto community, especially considering the apprehension stemming from a steep decline in SOL’s TVL just a year ago.