The FTX estate plans to sell locked Solana tokens through an auction, following the initial $1.9 billion sale to industry firms like Galaxy Digital and Pantera. Mike Cagney, CEO of Figure, confirmed the auction, although details are yet to be revealed.
The locked Solana tokens, representing a sizable chunk of FTX’s digital asset holdings FTX’s digital asset holdings, drew attention from bidders looking to purchase them at a discount. FTX’s estate sold two-thirds of its token holdings for $2.6 billion at an average price of $60 per token. However, given the volatile nature of cryptocurrencies, price swings may occur before the tokens are released.
Despite these concerns, there is significant demand for the locked Solana tokens. Figure Markets, led by Mike Cagney, plans to set up a Special Purpose Vehicle (SPV) to allow non-US and accredited US investors to participate in the auction. The players wanted to add the SPV into Figure Markets as suitable collateral for borrowing and margining but still needed a projected timescale.
Solana’s price has been on a rollercoaster ride lately, showing signs of an upward trend. After hitting a high of $210 on March 18, it took a steep dive, dropping by over 44% to hit around $116 on April 13. But it’s not all downhill—recently, it’s bounced back, trading about 30% higher than its low point.
Suni Kavuri, an FTX “creditor activist,” has applauded the transition to an auction-based system for property transactions. Figure Markets’ Cagney has set a $5,000 minimum commitment for creditors to participate in these transactions, as opposed to the $5 million necessary to acquire directly from FTX.
Kavuri claims that FTX’s property sale is wrong and that whatever value S&C and co-conspirators have lost for FTX creditors is being sought through class lawsuits. The current value is based on prices, not their BS petition date pricing scheme.
