The potential Solana (SOL) liquidation from failed exchange FTX has become a focal point for traders and crypto investors. The speculation and accompanying FUD (Fear, Uncertainty, Doubt) surrounding the potential sell-off have amplified market uncertainties.<\/p>\n
A recent court approval paved the way for the embattled exchange FTX to liquidate $3.4 billion in diverse digital assets. This move, announced<\/a> by Judge John Dorsey, has set off a whirlwind of debates, especially regarding Solana, one of the assets in FTX\u2019s portfolio.<\/p>\n Among FTX\u2019s vast portfolio, a prominent $1.16 billion is in Solana (SOL). When pitted against FTX\u2019s overall liquid cryptocurrency assets<\/a> worth $3.4 billion, SOL forms a hefty chunk, over one-third. <\/p>\n FTX\u2019s potential dumping of SOL and its conceivable effect on centralized exchanges has led to increasing debates about its potential price impact on the token. However, crypto analyst MartyParty has ventured into the heart of the discussion, trying to clear the air. <\/p>\n The analyst shed light on FTX\u2019s SOL position in a revealing tweet. Highlighting the intricacies, the analyst stated that many of these holdings, linked to FTX\u2019s sister company Alameda, consist of staked SOL tokens. These, crucially, remain locked until 2025. <\/p>\n This is Alamedas Solana wallet which has the rights to the 26,740,743 staked $SOL<\/a> from 2025-2028.<\/p>\n This wallets keys will be sold in the FTX liquidation. Not the $SOL<\/a> which cannot be unlocked until 2025-2028.<\/p>\n As Ive been posting for weeks \u2013 FTX\/Alameda only hold 7m $SOL<\/a> and\u2026 pic.twitter.com\/WeIkCKf2Ek<\/a><\/p>\n \u2014 MartyParty (@martypartymusic) September 13, 2023<\/a><\/p>\n As a result, any immediate liquidation involving these tokens remains off the table. MartyParty also emphasized that the imminent FTX liquidation<\/a> is solely for selling the wallet keys, not the wallet\u2019s contents.<\/p>\n Further clarification by MartyParty indicates that when the staked tokens are set aside, FTX and Alameda only hold 7 million SOL<\/a> and Wrapped SOL (wSOL). These are already slated for pre-sale to the Solana Foundation. <\/p>\n In MartyParty words, \u201cThere is no more Solana to sell.\u201d When viewing this in light of Solana\u2019s daily trading volume, which fluctuates between 350 million and 450 million tokens, it\u2019s evident that the market can comfortably absorb the FTX liquidation without significant disruption.<\/p>\n To provide perspective, even a total liquidation of FTX\u2019s SOL holdings at the current market rate<\/a> would tally up to $128.6 million. Not to mention, the weekly sell-off cap set at $100 million further ensures market stability, according to MartyParty.<\/p>\n MartyParty concluded his deep dive by emphasizing<\/a> that no liquidation event in the past has significantly shaken the crypto market. It\u2019s a \u201cnarrative spun to spur sales, with exchanges often capitalizing on the panic to buy low and sell high.\u201d<\/p>\n Meanwhile, over the past 24 hours, Solana has been bullish. The asset is currently up by 4%<\/a> with a market price of $19.05, at the time of writing.<\/p>\n Featured image from iStock, Chart from TradingView<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n The potential Solana (SOL) liquidation from failed exchange FTX has become a focal point for traders and crypto investors. The speculation and accompanying FUD (Fear, Uncertainty, Doubt) surrounding the potential sell-off have amplified market uncertainties.<\/p>\n A recent court approval paved the way for the embattled exchange FTX to liquidate $3.4 billion in diverse digital assets. This move, announced<\/a> by Judge John Dorsey, has set off a whirlwind of debates, especially regarding Solana, one of the assets in FTX\u2019s portfolio.<\/p>\n Among FTX\u2019s vast portfolio, a prominent $1.16 billion is in Solana (SOL). When pitted against FTX\u2019s overall liquid cryptocurrency assets<\/a> worth $3.4 billion, SOL forms a hefty chunk, over one-third. <\/p>\n FTX\u2019s potential dumping of SOL and its conceivable effect on centralized exchanges has led to increasing debates about its potential price impact on the token. However, crypto analyst MartyParty has ventured into the heart of the discussion, trying to clear the air. <\/p>\n The analyst shed light on FTX\u2019s SOL position in a revealing tweet. Highlighting the intricacies, the analyst stated that many of these holdings, linked to FTX\u2019s sister company Alameda, consist of staked SOL tokens. These, crucially, remain locked until 2025. <\/p>\n This is Alamedas Solana wallet which has the rights to the 26,740,743 staked $SOL<\/a> from 2025-2028.<\/p>\n This wallets keys will be sold in the FTX liquidation. Not the $SOL<\/a> which cannot be unlocked until 2025-2028.<\/p>\n As Ive been posting for weeks \u2013 FTX\/Alameda only hold 7m $SOL<\/a> and\u2026 pic.twitter.com\/WeIkCKf2Ek<\/a><\/p>\n \u2014 MartyParty (@martypartymusic) September 13, 2023<\/a><\/p>\n As a result, any immediate liquidation involving these tokens remains off the table. MartyParty also emphasized that the imminent FTX liquidation<\/a> is solely for selling the wallet keys, not the wallet\u2019s contents.<\/p>\n Further clarification by MartyParty indicates that when the staked tokens are set aside, FTX and Alameda only hold 7 million SOL<\/a> and Wrapped SOL (wSOL). These are already slated for pre-sale to the Solana Foundation. <\/p>\n In MartyParty words, \u201cThere is no more Solana to sell.\u201d When viewing this in light of Solana\u2019s daily trading volume, which fluctuates between 350 million and 450 million tokens, it\u2019s evident that the market can comfortably absorb the FTX liquidation without significant disruption.<\/p>\n To provide perspective, even a total liquidation of FTX\u2019s SOL holdings at the current market rate<\/a> would tally up to $128.6 million. Not to mention, the weekly sell-off cap set at $100 million further ensures market stability, according to MartyParty.<\/p>\n MartyParty concluded his deep dive by emphasizing<\/a> that no liquidation event in the past has significantly shaken the crypto market. It\u2019s a \u201cnarrative spun to spur sales, with exchanges often capitalizing on the panic to buy low and sell high.\u201d<\/p>\nDiving Deep: FTX\u2019s Solana Holdings And Potential Impact<\/h2>\n
Understanding The True Scope Of The Sale<\/h2>\n
Diving Deep: FTX\u2019s Solana Holdings And Potential Impact<\/h2>\n
Understanding The True Scope Of The Sale<\/h2>\n