SOL falls below $170! Will selling FTX at a low price of 66% to institutions crash the market? How long is the lock-up period?

It was reported last weekend that the FTX liquidation team selected Galaxy Asset Management to assist in the sale of the 41 million SOL locked in it. It is reported that Neptune Digital became the first company to publicly announce the acquisition of its SOL, purchasing 26,964 SOL at a price of US$64 each. The price per SOL has reached an all-time high.

If the SOL price was 188 US dollars when the news was exposed, the discount rate of 64 US dollars would be as high as 66%, which means that if you sell it immediately, you can directly make a cash profit of more than 290%. However, in order not to immediately affect the market, the two parties agreed to lock Warehouse agreement.

Note: The U.S. Bankruptcy Court ruled in mid-September last year that the crypto exchange FTX can use Galaxy’s assistance to sell up to $200 million in crypto assets per week, or to pledge or hedge its crypto holdings. currency to repay creditors.

FTX continues to sell SOL, and the currency price falls

And Bloomberg quoted the latest report from people familiar with the matter that nearly two-thirds of the 41 million SOLs have been sold, raising approximately US$1.9 billion for FTX Liquidity, sources revealed that funds participating in and bidding for DSOL include:

Galaxy Trading is one of the funds that raises funds from investors to bid for locked SOL. Investors can pay $64 per coin. Price participation, the fund will charge a 1% management fee, and BitGo is the SOL token custodian.

At the beginning of this month, Pantera also raised funds from investors to establish a fund and purchase locked SOL worth US$250 million. The Pantera plan charges a 0.75% management fee and a 10% performance fee.

However, perhaps affected by the news or dissatisfied with Solana being controlled by institutions, the price of SOL continued to fluctuate lower this week. Last night (5) it fell to a low of $167.84, the lowest in nearly two weeks.

How long is the lock-up time?

As for what many investors are concerned about, when will SOL, which was bought cheaply by institutions, be unlocked?

According to Neptune Digital, which bought 26,964 SOL, 20% of the tokens will be unlocked in March 2025, and the remaining tokens will be unlocked linearly every month until 2028.

In other words, these institutions will not be able to sell the tokens in their hands for nearly a year, and it will take four years to fully unlock them. However, since their entry cost is very low, will they choose to exit at a profit, or will they continue to wait for a higher price to be realized? It remains to be seen.

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