FTX to Auction Off Remaining Solana (SOL) Tokens: Report

Bankrupt cryptocurrency exchange FTX is considering offloading its remaining Solana native token, SOL, through an auction this week.

According to Bloomberg reportThe bankruptcy estate will auction off an unspecified amount of SOL, hoping for a higher price than it would have received through a direct sale, according to people familiar with the matter.

FTX to sell SOL at auction

The Blonde auction represents a shift away from the fixed-price sales that the bankruptcy estate has pursued for years. In particular, most creditors have expressed dissatisfaction with the direct sales approach as it undermines the value of FTX’s assets and minimizes creditors’ chances of recovery.

Since FTX began offloading SOL through direct sales, it has attracted interest from major crypto companies such as Pantera Capital, Neptune Digital Assets Corp, and Galaxy Trading, a division of Mike Novogratz’s Galaxy Digital.

Last month, the bankruptcy estate sold 25 million to 30 million lockup SOLs for $64 each, making a profit of $1.9 billion. The deal seemed attractive enough, but the buyer acquired FTX’s SOL for 67% less than the token’s value at the time. FTX has not yet disclosed SOL sales figures for April, but previous reports indicate that the asset sold approximately $2.6 billion worth of tokens.

Anonymous sources revealed that the auction deadline is Wednesday, April 24, and the results are expected to be announced on Thursday.

Figure market expresses interest

One company that has publicly expressed interest in the FTX SOL blind auction is crypto exchange Figure Markets. Mike Cagney, co-founder and CEO of the company, said: disclosed The company plans to create a special purpose vehicle (SPV) that will allow non-U.S. and U.S. investors to participate in the auction.

The SPV will accept investments in US dollars and circles (USDC), with bid prices determined by community consensus and on a one-to-one voting basis. This vehicle also allows retail investors and FTX creditors to participate in the auction with a minimum investment of $5,000, in stark contrast to the $5 million the estate has set for direct sales.

FTX bond activist Sunil Kavri was praised Mr. Cagney’s approach to auctions is that the law firm overseeing FTX’s bankruptcy proceedings, Sullivan & Cromwell, will sell the locked SOL to its customers at a deep discount, despite objections from creditors. He claimed to be adamant.

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