Solana is set to release 11.2 million SOL tokens today, valued at approximately $1.57 billion. This unlock is part of the ongoing bankruptcy process for the defunct FTX exchange.
Notably, the unlock comes as mounting legal expenses are making FTX bankruptcy one of the most costly Chapter 11 cases in US history.
A Massive Solana Token Unlock for FTX Bankruptcy Estate
On-chain data shows that the unlocked SOL represents about 2.2% of Solana’s circulating supply, which currently stands at 488 million tokens.
Still, the FTX estate has two additional smaller SOL unlocks in the coming months. On April 1, 12,700 SOL will be released, followed by 73,700 SOL on May 1.
These tokens were part of FTX’s holdings, which had been sold at discounted rates to investors in previous auctions.
Sunil Kavuri, a leading creditor advocate, revealed that FTX had liquidated 41 million locked SOL across three auctions. According to him, the buyers included crypto investment firms like Galaxy Digital and Pantera Capital.
Indeed, Galaxy Digital, the largest buyer, secured 25.5 million locked SOL at $64 per token, well below the current market price of $144.
Pantera and other firms made their purchases at approximately $95 per token. Meanwhile, Figure and its partners acquired SOL at $102.
Arthur Cheong, founder of DeFiance Capital, confirmed his participation in Galaxy Capital’s over-the-counter (OTC) sale. He stated that he purchased an undisclosed amount of SOL at $64 per token. Cheong also mentioned that he has no plans to sell, as he anticipates a significant price increase.
“Participated in the SOL OTC deal at $64 via Galaxy and received the bullet unlock today. Not selling a single one of them. I think it will be substantially higher in 3 months,” Cheong stated.
Meanwhile, the release of SOL tokens raises concerns about potential selling pressure. A flood of new tokens could increase supply and push prices downward.
Over the past week, Solana’s price dipped to a four-month low of around $136 amid a broader crypto market decline. However, the digital asset’s value has since rebounded to approximately $140 as of press time.
Moreover, this development comes as FTX’s bankruptcy proceedings entered a critical phase, with initial creditor distributions underway.
However, the legal expenses tied to the case are nearing a staggering $1 billion, positioning it among the most costly Chapter 11 filings in US history.
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