bankrupt crypto exchange ftx and its affiliate alameda research continue their systematic liquidation of solana (sol) assets, a pattern consistent with their monthly asset sales. recently, they transferred approximately 186,000 sol (valued at ~$21.56 million) to 22 different addresses after unstaking them. this follows a pattern of similar transfers around the 10th of each month.
Historically, these transferred SOL tokens are subsequently moved to centralized exchanges like Coinbase and Binance, often preceding significant SOL sell-offs. Since November 2023, FTX/Alameda have transferred over 8.031 million SOL (approximately $1.03 billion at current prices), averaging $128.30 per token. These transfers, while seemingly regular, have caused concern among SOL holders and traders.
The ongoing sales, while intended to repay creditors, are viewed negatively, especially given the association with FTX's collapse. The large-scale sell-offs raise concerns about potential price manipulation and the fairness of the distribution of funds to creditors, rather than benefiting FTX executives.
FTX/Alameda still holds approximately 5.359 million SOL (about $500 million), indicating this liquidation process will continue. The ongoing situation at FTX will likely influence future developments.
The steady liquidation of FTX's digital assets, which began after its November 2022 collapse, is a significant event in the aftermath of Sam Bankman-Fried's mismanagement. The court-approved asset sales aim to compensate creditors, with SOL representing a substantial portion of FTX's pre-bankruptcy holdings.
The consistent influx of SOL onto exchanges presents a challenge for the Solana ecosystem. Despite positive developments like network expansion and developer activity, the continuous selling pressure from FTX's liquidation continues to impact SOL's price recovery from its post-FTX crash lows. The association with FTX significantly damaged Solana's reputation.
