On October 13th, the FTX estate demonstrated its optimistic outlook on Solana (SOL) by staking an impressive 5.5 million SOL tokens.
This move, captured in on-chain data, involved an FTX-associated wallet sending the tokens to Figment, a staking validator firm catering to institutional investors.
The blockchain tracker Whale Alert initially detected the transaction, later confirmed as originating from an FTX estate address by the pseudonymous on-chain researcher, Ashpool.
In monetary terms, the staked coins amounted to a substantial $122 million, although they represent only a fraction of FTX’s overall SOL holdings.
Staking is a process in which a specific quantity of cryptocurrency is locked up for a predetermined period.
In return, stakers receive SOL coin rewards for contributing to the security and maintenance of the network through their stakes.
FTX’s history with Solana runs deep, as it was an early investor in the cryptocurrency.
Consequently, it regularly receives significant volumes of unlocked SOL tokens in line with the established vesting schedule.
The FTX estate, under the supervision of a bankruptcy trustee, retains the option to liquidate these holdings when deemed appropriate.
Its primary responsibility, however, revolves around asset recovery for the exchange’s creditors.
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In a noteworthy development from September, a United States court greenlit the sale of $1.3 billion worth of SOL from FTX.
This decision initially raised concerns among SOL holders regarding a potential price slump.
To mitigate any undue pressure on the crypto market, the bankruptcy court mandated that the sale occur through an investment adviser in weekly installments.
This directive led to SOL’s price dipping to a two-month low of $17.34 on September 11th.
Notably, FTX boasts holdings of $3.4 billion in Digital Assets A, a portfolio comprising some of the company’s top 10 assets, including Solana, Bitcoin (BTC), Ethereum (ETH), Aptos, and various other cryptocurrencies.
As indicated in court filings from September, over $7 billion has been successfully recovered since the exchange filed for bankruptcy protection in November 2022.
In a separate and significant development, Sam Bankman-Fried, co-founder of FTX, currently finds himself on trial at a district court in Manhattan, facing allegations of fraud and conspiracy to commit fraud.
If proven guilty, he could potentially face a prison sentence of up to 115 years.
This ongoing legal battle casts an additional layer of complexity over the future of FTX and its involvement in the cryptocurrency market.
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