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Solana’s price drops by 6% as concerns of an FTX sell-off emerge.

In the past 24 hours, the price of Solana has experienced a significant decline of over 6% due to growing concerns surrounding the potential liquidation of substantial amounts of the token and other Solana-related cryptocurrencies by FTX,

a financially distressed crypto exchange.

The price of Solana has fallen 6% to $18.38 in the last 24 hours

Based on data compiled by Solscan, it has been determined that the FTX estate possesses a substantial sum of $1.5 billion in crypto assets on the Solana network,

as indicated by the combined value of the three publicly available FTX cold storage wallets.

Out of this considerable amount, Solana tokens account for a relatively modest $128 million,

while the remaining portion comprises a variety of Solana-based altcoins.

These altcoins include Wrapped Bitcoin (wBTC), Maps token (MAPS), Serum (SRM),

and several other tokens playfully referred to as “Sam coins,” a playful nod to the former FTX CEO,

Sam Bankman-Fried.

The total sum of Solana-based tokens on FTX Cold Storage #1 wallet

The market sentiment remains skeptical as the possibility of liquidators releasing $128 million worth of SOL and several hundred million dollars’ worth of other SOL-related tokens looms.

Concerned users have taken to various platforms, including X (formerly known as Twitter),

to express their apprehensions about the imminent sell-off.

One user wrote, “FTX is on the verge of dumping $680 million worth of SOL,” while another predicted,

“SOL’s value will plummet once FTX sells its holdings, possibly reaching $14 soon.”

However, some individuals have encouraged calmness,

pointing out that the bankruptcy plan imposes limitations on the amount that can be sold at once.

FTX’s bankruptcy filings outline a proposed plan for the liquidation of the exchange’s assets,

which includes specific conditions governing the sale of tokens.

Solana – FTX Proposes Investment Manager for Crypto Holdings Sales amid Court Proceedings

On August 24, FTX put forth a proposal to appoint Galaxy Digital Capital Management,

led by Mike Novogratz, as the investment manager responsible for overseeing the sales of its reclaimed crypto holdings.

According to the plan, the FTX estate would have a maximum limit of selling tokens worth $100 million per week.

However, there is a possibility of raising this limit to $200 million for individual tokens.

These restrictions aim to mitigate the potential impact of token sales on the wider market while still ensuring that FTX can satisfy its creditors.

It is important to note that the plan has not been officially approved by the courts yet.

However, it is anticipated that the plan, along with other matters concerning FTX token sales,

will be presented before the Delaware Bankruptcy Court on September 13.

During a hearing on April 12, FTX disclosed that it had recovered approximately $7.3 billion in liquid assets,

with $4.8 billion of that amount recovered as of November 2022.

Documents presented during the hearing indicated that FTX held a total of $4.3 billion in crypto assets available for stakeholder recovery at market prices as of April 12.

FTX assets available for stakeholder recovery as of April 12.

As of the time of writing, Solana is trading at $18.38 per token,

representing a decline of nearly 11% for the week.

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