FTX Plans To Unleash Locked Solana Tokens In Upcoming Auction, Announces Mike Cagney

FTX’s upcoming sale of its stockpile of locked Solana tokens will be conducted through an auction, likely due to high buyer demand.

The FTX estate’s next sale of locked Solana tokens, which has attracted significant buyer interest, will be in the form of an auction instead of a fixed-price sale.

Following the estate’s sale of $1.9 billion worth of Solana tokens to industry players like Galaxy Digital and Pantera, the next sale will be auction-based, as mentioned by Figure CEO Mike Cagney. Specific details of the auction are yet to be disclosed, and FTX has not yet responded to a request for comment.

The locked Solana tokens, which comprised the largest portion of FTX’s digital assets at the time of its collapse, have drawn considerable interest from buyers. These buyers are willing to take the risk of purchasing locked Solana tokens at a discount, despite the uncertainty around when these tokens can be resold in the future.

The last sale of about two-thirds of FTX’s stash brought in $2.6 billion for the estate, with the tokens sold at a cost of approximately $60 each. Given that Solana’s current price is around $150, this investment seems promising. However, cryptocurrency’s high volatility could cause substantial price fluctuations before these tokens are unlocked, affecting their eventual sale value.

Despite this, there is still considerable interest in the locked tokens. Cagney’s Figure Markets plans to establish a Special Purpose Vehicle (SPV) for non-US investors and accredited US investors to join in the auction, a move endorsed by vocal creditor Sunil Kavuri.

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