Since the closure of FTX, the bankruptcy restructuring team of FTX has been actively raising funds to repay creditors, one of which is to sell cryptocurrency assets in exchange for cash. The previous auction had an average cost of only $64, resulting in a significant price difference.
(Summary:
SBF, FTX Victims Reach Settlement: Withdraw SBF Lawsuit, Cooperate in Pursuing Civil Liability for “Celebrity Endorsers”)
(Context:
SOL Falls Below $170: FTX Offers Discounted 66% Sale to Institutions, Will Market Collapse? How Long is the Lock-up Period?)
Since its closure in November 2022, the bankruptcy restructuring team of FTX, a cryptocurrency exchange, has been actively raising funds to repay creditors. One aspect of this is selling FTX’s cryptocurrency assets in exchange for cash.
Previously, many companies have purchased “locked SOL tokens” from FTX through direct purchase or fundraising. According to Mike Cagney, CEO of Figure, the next sale of “locked SOL tokens” will be conducted through an auction, but specific details have not been disclosed.
Opportunity for retail investors to participate
Furthermore, Mike Cagney also stated that Figure Markets plans to create a special purpose vehicle (SPV) to participate in the upcoming SOL auction by FTX. For ordinary investors, this may be one of the few opportunities to participate in institutional auctions.
However, Figure Markets stated in the explanation that they will charge a management fee of 50 basis points (0.5%) for the SPV. Interested readers can visit Figure Markets for more information.
Average cost of the first auction was only $64
The FTX bankruptcy restructuring team chose Galaxy Asset Management to assist in selling SOL tokens in September 2023. The registered investment advisor (RIA) is currently distributing the tokens to potential bidders, some of whom are fundraising to conduct a larger-scale bidding.
Neptune Digital is the first company to publicly announce the acquisition of FTX’s locked SOL tokens, purchasing 26,964 tokens at a price of $64 each.
Galaxy Trading is one of the funds that raised funds from investors to bid for locked SOL tokens. Investors can also participate at a price of $64 per token, and the fund charges a 1% management fee.
The current price of SOL is $152, which represents a discount of up to 57.9% compared to $64. This means that purchasing SOL at $64 can result in a profit of over 237%. However, investors don’t need to worry too much about the selling pressure of SOL. As mentioned earlier, the FTX sales are all “locked SOL tokens” and will not have a significant impact on the market in the short term.
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