FTX to sell nearly $8 billion worth of SOL, locked for four years, still attracting institutional investors' bids

FTX is restructuring its team and still has 41 million SOL tokens awaiting liquidation, valued at approximately $7.7 billion. Even though these tokens may not fully unlock until 2028, it appears to be attracting significant interest from institutional investors.

41 Million Locked SOL Tokens for Sale

The Block cited nine sources revealing that the FTX restructuring team had chosen Galaxy Asset Management as their token liquidator, with Galaxy currently negotiating and auctioning off a large amount of locked SOL tokens with various parties.

Last September, a U.S. bankruptcy court ruled that the crypto exchange FTX could sell up to $200 million in crypto assets weekly through Galaxy's assistance, or use their held cryptocurrencies as collateral to repay creditors.

Neptune Digital became the first company to publicly announce its acquisition of locked SOL tokens from FTX, claiming to have bought 26,964 SOL tokens at an average price of $64. 20% of the tokens will unlock in March next year, with the rest unlocking monthly until 2028.

Galaxy Trading Fundraising Auction

Galaxy Trading is one of the funds raising capital from investors to bid on a portion of SOL tokens. According to three sources, the average price is also $64, with the fund charging a 1% management fee and BitGo serving as the custodian.

Galaxy Trading will also allocate staking rewards based on investors' contributions, but currently, the rewards will be locked in sync with the SOL tokens.

Two other sources revealed that Galaxy Trading's purchasing quota was ultimately reduced by 13% because the FTX restructuring team still holds final decision-making power over the allocation, and there is still remaining quota left unallocated.

Will the SOL Conversion Price for Creditors Remain at $16?

FTX is currently using the fiat value held by creditors at FTX in November 2022 as the price for the so-called "full compensation."

However, FTX's 40 million SOL tokens were worth $5.4 billion in early March this year and have now approached $8 billion. According to a letter received by FTX creditors from the bankruptcy handling company Kroll, the conversion price for SOL remains at $16.24.

If creditors' SOL tokens remain at the $16 conversion price, where will the extra $3 billion from the liquidation flow to?

Pantera Plans to Purchase SOL from FTX Restructuring, Collateralized, at a 50% Discount, with a 4-Year Lockup Requirement