FTX auctioning remaining Solana tokens after creditor concerns over direct sales.
People who know the situation told Bloomberg that the bankruptcy estate would auction off an unspecified quantity of SOL to obtain a higher price than they could have received through direct sales.
A SOL Sale by FTX via Auction
The blond auction departs from the bankruptcy estate’s customary practice of conducting fixed-price sales. It is worth noting that most creditors have voiced their discontent with the direct sales strategy, as it diminishes the worth of FTX’s assets and thereby restricts the potential recovery of creditors.
Ever since it commenced offering its SOL through direct sales, FTX has garnered the attention of prominent cryptocurrency firms, including Pantera Capital, Neptune Digital Assets Corp, and Galaxy Trading, a division of Mike Novogratz’s Galaxy Digital.
The bankruptcy estate sold 25 million to 30 million locked-up SOL at $64 each last month, generating a maximum of $1.9 billion in proceeds. Despite the transaction’s apparent allure, the purchasers obtained FTX’s SOL at a 67% discount on the token’s value at the time. Although FTX has not disclosed its April SOL sales, prior information indicates the asset has sold tokens for approximately $2.6 billion.
According to unidentified sources, the auction is due on Wednesday, April 24th, and the results are expected to be disclosed on Thursday.
Markets Figure Declares Interest
Figure Markets, a cryptocurrency exchange, has publicly declared interest in the FTX SOL anonymous auction. The organization’s CEO and co-founder, Mike Cagney, revealed that for the auctions, the firm would establish a Special Purpose Vehicle (SPV) accessible to both U.S. and non-U.S. investors.
The SPV will accept investments in the U.S. dollar and Circle (USDC), with offer prices determined by community consensus in a ratio of $1:1. Furthermore, the auction platform permits retail investors and FTX creditors to partake with a modest minimum investment of $5,000, which stands in striking contrast to the estate’s initial requirement of $5 million for direct sales.
Sunil Kavuri, an advocate for FTX creditors, praised Cagney’s auction strategy. Kavuri insisted that Sullivan & Cromwell, the legal firm in charge of FTX’s bankruptcy proceedings, was committed to selling the sealed SOL to its clients at a substantial discount, notwithstanding the objections raised by creditors.