FTX Estate stakes $122M Solana (SOL) tokens, alleviating investor concerns

• FTX Estate stakes $122 million worth of Solana (SOL) tokens.
• The FTX Estate has strategically delegated 5.5 million SOL with a Solana network validator.
• The move alleviates concerns about the estate’s potential liquidation of SOL holdings.

In a significant move within the cryptocurrency landscape, the FTX estate has staked over 5.5 million Solana (SOL) tokens, amounting to a substantial $122 million, with Figment, a prominent validator on the Solana network as reported by on-chain data from SolanaFM.

This development comes amid ongoing discussions and speculations within the crypto community regarding the estate’s handling of its substantial Solana holdings. Here’s an overview of the recent events and implications.

FTX Estate’s strategic staking of Solana tokens

The move of staking such a huge amount of Solana tokens with Figment has captured the attention of industry observers, particularly in light of concerns regarding potential sell-offs of the estate’s significant holdings, which could have adversely impacted the market value of SOL.

This staking activity, worth $122 million, signifies a proactive approach from the FTX estate and suggests a bullish stance on the long-term prospects of the Solana blockchain. At press time, the SOL token was trading at $21.96 after surging by 2.08% following the news.

FTX’s asset recovery

In a recent court filing dated September 11, 2023, the FTX estate disclosed that it has successfully recovered assets totalling approximately $7 billion. Notably, this includes a substantial portion of staked SOL tokens amounting to over $1 billion, along with a significant holding of $560 million in Bitcoin (BTC).

The estate also revealed additional asset classes, including $200 million in real estate holdings in the Bahamas and $1.9 billion in illiquid assets. These disclosures underscore the FTX estate’s substantial financial holdings and continued asset recovery and management efforts.

As the former CEO of the collapsed exchange, Sam Bankman-Fried, navigates through a legal battle involving fraud charges, the recent strategic staking by the FTX estate presents a promising outlook for the Solana network. With the unlocking of SOL tokens scheduled to continue, market observers will keenly monitor the estate’s future moves, which could significantly influence the crypto market dynamics.