As part of concentrated efforts to reimburse the plummeted Futures Exchange (FTX) creditors, the FTX estate has liquidated more than half of the exchange's SOL holdings, realizing about $2 billion. Per a Bloomberg report, the FTX estate completed the sales of about 25 million to 30 million SOL tokens at $64 per coin.
Meanwhile, according to Solana's price statistics, the digital asset is changing hands at about $176, which invariably implies that the $64 selling price mirrored more than 70% discount offer.
The token sales attracted interest from top digital assets managers and venture capitalists like Galaxy Trading, Pantera Capital, and Neptune Digital Assets, who raised millions of dollars to partake in the clearance sales.
How Top Firms Invested In The Discounted Deal
According to reports, Galaxy Trading, with about $620 million, was said to have raised the highest amount for SOL purchases from the FTX estate. The raised sum will generate returns on investment (ROI) for traders via staking, and investors hoping to benefit from the realized fund will remit a 1% management fee.
On the other hand, Pantera Capital, another digital assets firm, successfully raised about $250 million to procure SOL from the FTX estate while Neptune Digital Assets, a blockchain firm based in Canada, purchased about 26,964 SOL from the FTX estate at the rate of $64 per coin, around late March.
Implications Of The Discounted Sales
While the clearance sale pattern might aim at a rapid sell-off to compensate affected FTX investors, probably before this year concludes, the discounted price seems extremely low relative to the coin's current price, which implies that creditors should not expect any significant increment in the values of their holdings on FTX before its collapse.
In a nutshell, the FTX estate is upholding the revised Chapter 11 repayment plan, which states that creditors would be repaid based on the value of their account holdings on FTX as of November 11th, 2022 – the date of the exchange's collapse.
While the above does not seem to go down well with most investors, looking at the brighter side, which entails they don't lose out completely, remains a better option, considering that it has legal backing, as stated by the FTX Attorney, Andy Dietderich, “I have no wiggle room on that. The Bankruptcy Code says what it says, and I am obligated to follow it.”
The best creditors can do now is to ensure they have presented their claims before the announced May 15, 2024, deadline, even as they hope for a favorable final decision in the repayment plans.
