fter liquidating over $1 billion in locked SOL tokens through private fixed-price sales, the estate of bankrupt crypto exchange FTX is shifting gears. Figure Markets CEO Mike Cagney broke the news that the next Solana stockpile held by FTX would go to auction instead. With over $1.2 billion in SOL tokens still under its control as of August, the estate is clearly eager to maximize returns for its creditors through a more competitive bidding process.
Auction Details Emerge
To provide more access to interested parties, Cagney is organizing a Special Purpose Vehicle (SPV) that allows non-U.S. investors and accredited Americans to participate collectively. The auction will consolidate bids and amplify purchasing power compared to individuals bidding alone. While exact sale terms have yet to be finalized, Cagney is inviting those impacted by the previous SOL sales or simply intrigued by the opportunity to join the SPV. This cooperative structure aims to influence the auction outcome favorably for members through concentrated demand.
Implications for SOL Price
When FTX's first batch of locked SOL tokens sold in mid-November at around $64 each despite the market price being $150, it represented a steep 67% discount. This fueled speculation about the tokens depreciating SOL's value in the short term. However, with an auction dynamic that stimulates competitive bidding rather than fixed-price dumping, pressure on SOL could ease. A stronger collective bid assembled by the SPV also gives investors direct influence to potentially move prices closer to fair market value. For SOL hodlers waiting for an uptrend, the auction presents both risks and chances to catalyze upside momentum for the cryptocurrency.
Strategies for Participation
Interested parties still have time to be part of the SPV before auction day arrives. For those not involved, charting SOL's price action closely around that period will be important. If the tokens end up selling significantly above the previous $64 price through competitive bidding, it would signify reduced downside risks to SOL's value. However, a similar or lower sale price could renew downward pressure. Traders may wish to short SOL or scale into long positions depending on the auction result. Overall, a well-executed strategy tailored to one's goals can help profit from this unique market situation created by FTX's collapse.
