FTX Sells Up to 30 Million Solana Tokens at a Discounted Price, Attracting Major Investors
In the midst of its bankruptcy proceedings, FTX has just completed a significant sale of Solana (SOL) tokens to major players in the industry such as Galaxy Trading and Pantera Capital.
Between 25 and 30 million SOL tokens were sold at $64 each, well below their current market value of approximately $178, allowing FTX to raise between $1.6 and $1.9 billion.
Galaxy Digital and Pantera Capital Buy SOL at $64
This sale has generated notable interest from industry giants including Galaxy Trading and Pantera Capital, viewing this transaction as an opportunity to make significant gains.
However, the operation comes with risks due to SOL’s historical volatility. The terms of the sale included a four-year lock-up period for the invested capital, adding a layer of complexity to the investment.
Strategic Fundraising by Galaxy Digital
Galaxy Trading, under the guidance of Mike Novogratz from Galaxy Digital, has distinguished itself by raising approximately $620 million to purchase SOL tokens, imposing a 1% management fee on investors. This approach also includes generating returns through staking, demonstrating a strategic approach in managing the acquired tokens.
Meanwhile, Pantera aimed to acquire a substantial amount of SOL, with an investment target of up to $250 million.
FTX’s Strategy and Creditors’ Concerns
The way FTX manages its extensive cryptocurrency holdings has come under scrutiny, especially after the temporary suspension of the SOL sale due to significant buyer interest. The decision to sell a significant portion of its SOL holdings at a discounted price aimed to efficiently raise funds for its estate. The prior involvement of FTX co-founder Sam Bankman-Fried in supporting SOL added layers of interest and complexity to the sale.
Creditors’ reactions to this sale have been mixed, with some expressing their dissatisfaction, claiming to have been unjustly treated in the sales process. The valuation of claims based on the price of SOL at the time of FTX’s bankruptcy filing has been a point of contention, especially after the token’s price increase in the following months.
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FTX Sells Up to 30 Million Solana Tokens at a Discounted Price, Attracting Major Investors In the midst…
The article FTX Sells Up to 30 Million Solana Tokens at Discounted Price, Attracting Major Investors appeared first on Coin Academy. Read MoreAltcoins News, Crypto News
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