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In a significant move, FTX and Alameda Research have unstaked over 3 million Solana tokens, marking a pivotal moment in their ongoing liquidation efforts.
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This latest development highlights the increasing pressure on the firms to convert staked assets into liquid capital amidst ongoing bankruptcy proceedings.
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As noted by blockchain analytics firm Lookonchain, “The total value of unlocked tokens significantly impacts market dynamics and liquidity.”
FTX and Alameda unstaked 3M Solana tokens worth $431M, signaling a major liquidation strategy as they navigate bankruptcy proceedings.
FTX and Alameda’s Largest SOL Unlock Since November 2023
On March 4, FTX and Alameda Research took a decisive step by unlocking **3.03 million Solana (SOL)** tokens, valued at approximately **$431 million**. This action marks their largest SOL unlock since they began unearthing funds in November 2023. The urgency behind this decision reflects the firms’ ongoing liquidity struggles in the face of bankruptcy.
Following the **unstaking**, wallets associated with FTX and Alameda transferred around **25,000 SOL**, or roughly **$3.3 million**, to Binance, emphasizing their reliance on exchanges to facilitate transactions. Since the previous significant unstaking event late last year, where they unlocked **2.1 million SOL** worth **$141 million**, they have engaged in a continual strategy of converting staked assets into liquid funds.
The Impact of Legal Constraints on Liquidation
Despite the substantial amount of unlocked SOL, both firms face restrictions on their ability to sell all assets at once. In **September 2023**, the Delaware Bankruptcy Court authorized FTX to sell digital assets with strict limitations, enforcing a maximum sale of **$50 million** in the initial week and **$100 million** thereafter. Any attempt to liquidate higher amounts requires prior court approval.
According to data from **Spot On Chain**, post-unlocking, FTX has unstaked an impressive **7.83 million SOL** since November, with total token offloading reaching nearly **$1 billion** at an average price of **$125.80 per SOL**. This outlines the scale at which these firms need to maneuver within the legal frameworks set by the court.
Recent Developments in Customer Repayments
As these transactions unfold, FTX is concurrently involved in a **$1.2 billion** repayment initiative to customers impacted by its abrupt collapse earlier. Initiated on **February 18**, this payment plan is seen as a necessary step toward restoring some trust in the crypto industry, albeit marred by complications.
Recent reports indicate that numerous customers from **163 jurisdictions** have been deemed ineligible for these repayments, leading to significant concern regarding equitable distribution. FTX advocate **Sunil Kavuri** has publicly acknowledged the frustrations faced by claimants from these regions, asserting that the exchange is exploring options for better inclusivity in the repayment process.
Market Reactions and Future Implications
The liquidation of SOL tokens by FTX and Alameda is reverberating throughout the cryptocurrency market. Observers remain watchful of how this vast move will influence Solana’s price and the overall market sentiment—not lost on many is the **45% drop in Solana’s value** since significant events like the **Trump token launch**, which has diverted liquidity and market interest.
Conclusion
In summary, the recent actions by FTX and Alameda underscore a critical juncture for both firms as they navigate the complexities of bankruptcy and asset liquidation. Their strategy to unstake and sell significant portions of SOL while initiating customer repayments points to an urgent need for liquidity. Stakeholders and market participants should monitor these developments closely, as they will likely shape the future dynamics of the Solana ecosystem and broader crypto market.
