FTX plans to auction Solana tokens amid bankruptcy liquidation, possibly leading to community bidding. Solana is testing crucial $156 resistance, eyeing a potential surge to $185.
FTX, facing bankruptcy since November 2022, is taking a big step by auctioning off a large amount of Solana (SOL) tokens. This move is part of their plan to settle debts. Unlike before, they’re not selling at fixed prices but using auctions, which could shake up how the market works.
FTX’s Auction Strategy for Solana Tokens
Previously, FTX sold between 25 million and 30 million SOL tokens, generating nearly $1.9 billion. These were sold at $64 each, a significant 60% discount from the market price at the time. However, buyers had to lock their SOL for four years in exchange for the discount, as explained by Eva Weng from Caladan.
The decision to switch to an auction format this time could lead to competitive bidding, potentially impacting Solana’s market price. Although Mike Cagney, CEO of Figure Markets, confirmed the auction, final details are still pending.
Figure Markets, led by Mike Cagney, is developing a Special Purpose Vehicle (SPV) to enable the crypto community’s involvement in the auction. This mechanism aims to attract both non-US and accredited US investors, allowing them to participate in community consensus to set bid prices and manage subsequent investments.
Implications of Auction Format on Solana Pricing
The adoption of an auction format may intensify bidding activity, potentially impacting Solana’s pricing trends.
Currently, Solana’s price is showing signs of a potential upswing. After hitting a high of $210 on March 18, it experienced a significant decline of over 44%, dropping to around $116 on April 13. However, it has since rebounded, trading nearly 30% higher from the low.
Solana (SOL) Price Performance. Source: TradingView
This recovery is crucial as Solana faces major resistance levels near $156, a significant Fibonacci retracement point. If Solana manages to sustain its position above $156, it could potentially rise by 22% to around $185, targeting the 0.786 Fibonacci level. Conversely, failure to surpass this barrier might lead to support at $145.56.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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