FTX Prepares to Repay Distressed Investors, Expedites Solana (SOL) Sales to Cover the Needed Funds

The relationship between Solana (SOL), a top-tier layer-one (L1) blockchain, and FTX and its sister firm, Alameda Research, continues to this day, nearly two years after its collapse.

Solana (SOL) continues to feel the presence of FTX and its sister firm, Alameda Research, nearly two years after its collapse. As the defunct cryptocurrency exchange prepares to begin repaying distressed investors in Q4 2024, it plans to expedite its Solana sales to generate the necessary funds.

The court has ordered FTX to repay the outstanding credit, which could reach $16 billion, and the company intends to facilitate this process using stablecoins. As Coinpedia previously reported, FTX has already started receiving stablecoins despite potential legal obstacles from the US SEC regarding the matter.

Solana sales by FTX and Alameda are expected to be executed through an over-the-counter (OTC) desk to minimize any adverse effects on the market. Earlier this year, Pantera Capital announced its plans to raise funds from investors to purchase Solana from FTX at a discounted rate.

Pantera aimed to acquire $250 million worth of Solana at a 39% discount to the market price.

A鉾4y…gFZ wallet, linked to FTX/Alameda, redeemed 177,693 SOL (US$23.75 million) from Solana PoS staking. Might be transferring SOL to CEX. H4y…gFZ address still has up to 7.057 million SOL (US$943 million) in staking. Most of the SOL held by FTX may…

Earlier on Thursday, on-chain data revealed that an address associated with FTX and Alameda unstaked 177,693 SOL units, valued at approximately $24 million. The address reportedly still has over 7 million SOL, worth more than $953 million, in staking.

Impact on SOL Price Action

Amid the ongoing gradual crypto recovery, spearheaded by Bitcoin (BTC) ahead of the Fed’s interest rate decision next week, Solana's price has established a solid support level above $122. The large-cap altcoin, boasting a fully diluted market cap of around $78 billion and an average daily trading volume of about $2.7 billion, rallied nearly 3% in the last 24 hours, trading around $135 during the early European session on Thursday.

FTX's Solana unstake is unlikely to significantly impact the underlying SOL price action, given the strong demand for the altcoin among both retail and institutional investors.

A recent highlight in SOL's institutional adoption was the approval of spot Solana ETFs in Brazil.

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