FTX Withdraws $28 Million from Solana, Investors Wary of Market Impact

Cryptocurrency exchange FTX, after declaring bankruptcy, continues to raise concerns in the investment community by withdrawing 178,631 SOL, worth $28 million, from the Solana network. The move is part of FTX’s ongoing liquidation of approximately $1.1 billion in assets.

FTX Continues Solana Liquidation
On October 15, FTX withdrew 178,631 SOL, worth approximately $28 million, as part of its liquidation plan to repay creditors.

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Market Impact of FTX’s SOL Sale
FTX’s large SOL sale could put downward pressure on Solana. However, FTX has taken steps to mitigate this impact by selling 30 million SOL to venture capital firms such as Pantera Capital and Galaxy at a discount and with a vesting schedule, in order to prevent a sudden drop in the price of SOL.

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The Downside
Solana has fallen below $10 following FTX’s bankruptcy.

FTX was once one of the largest validators on the Solana network. FTX’s bankruptcy caused a network-wide outage on Solana.

Why This Matters
FTX liquidating a large amount of SOL will be a test of Solana’s stability in the face of massive selling pressure. Investors should closely monitor FTX’s next moves to assess the potential impact on the market.