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.
Read more: What Is Solana (SOL)?
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 Face Uncertainty in Recent Times
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, Solana 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 led to significant excitement amongst avid members of the SOL crypto community, especially considering the apprehension stemming from a steep decline in Solana’s TVL just a year ago.
Read more: Solana vs. Ethereum: An Ultimate Comparison
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