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On October 15, Solscan revealed that the collapsed crypto exchange FTX and its sister firm Alameda Research has unstaked 178,631 Solana (SOL), valued at approximately $28 million.
Although this significant move is part of the FTX’s broader asset liquidation strategy. However, it has sparked widespread speculation about a potential selloff that could impact SOL’s price.
FTX’s Unstaking Sparks Fears of Price Volatility
Few weeks after the defunct trading platform auctioned Worldcoin’s token (WLD) at a steep price, it decided to unstake this large amount of Solana tokens.
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On-chain analyst @EmberCN revealed in an X post that these unstaked tokens are expected to be split across multiple wallets. Likely to major exchanges like Binance and Coinbase
This Solana unstaking event comes at a time when crypto traders are increasingly optimistic about the memecoin reaching a new high before year-end. At the time of writing, Solana is trading at $154.33, down by 1.96% in the last 24 hours as per CoinMarketCap data.
This price movement reveals a cautious outlook among Solana investors, fearing that FTX’s recent action could drive the memecoin’s prices lower.
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A History of Monthly Solana Redemptions
FTX’s recent transaction is just one in a series of similar movements over the past year. With a keen eye of observation, it was shared that this unstaking event is a consecutive pattern.
This is because the defunct exchange use to execute similar transactions between the 12th and 15th of each month. One of the most notable cases occurred last month, when FTX redeemed 177,693 SOL in a single transaction, totaling $23.75 million.
Over the two months leading up to December 2023, FTX and Alameda Research transferred more than 13 million SOL tokens to various crypto exchanges.
Despite these frequent transfers, FTX and Alameda Research still hold a sizable 7.06 million SOL tokens, valued at nearly $945.7 million as of mid-September.
Part of a Broader Liquidation Strategy
It is worth noting that FTX’s latest unstaking event is just one aspect of its broader efforts to liquidate its assets holdings. This is part of its bankruptcy proceedings.
Since the exchange’s collapse in late 2022, FTX has been gradually selling off assets, including Ethereum, Polygon, and now Solana, to repay creditors.
In May, the estate of the defunct crypto exchange auctioned the collection of the underlying memecoin worth a staggering $2.6 billion.
Recently, the United States Bankruptcy Court for the District of Delaware confirmed FTX’s reorganization plan, marking a significant milestone for the company. Under this plan, 98% of creditors are expected to receive 119% of their allowed claims within 60 days.
