Pantera Capital, the first crypto fund in the U.S., participated in an FTX estate auction this week and won some of the bids for the 41 million locked Solana tokens. The auction, which was reported by Bloomberg, involved the sale of 2,000 SOL tokens this week. Following the bankruptcy of FTX in 2022, the exchange’s crypto holdings were left under lock, with Solana being the majority holding. The SOL tokens sold under the FTX estate are subject to a pre-agreed vesting period, limiting their market availability until gradually becoming accessible over the next four years.
Institutional investors have shown high demand for these locked SOL tokens, as they see an opportunity to acquire Solana at a discounted price. Pantera Capital, a prominent American hedge fund and venture capital firm with $5.2 billion in digital assets under management, has been actively involved in securing these tokens. In March, Pantera initiated a fund-raising effort to purchase up to $250 million worth of locked Solana from the estate. They were successful in winning a portion of the $2.9 billion worth of SOL sold earlier in the month alongside Galaxy Digital at $64 per token, significantly lower than the $178 trading price at the time.
Although the exact price at which the tokens were sold in the recent auction was not disclosed, it was noted that it was higher than the previous auction. It is expected that more auctions will take place in the future. The FTX estate auction, which has seen discounted sales of SOL tokens, has raised concerns about the exchange’s debt repayment capacity and has led to accusations of creditor rights violations. The four-year lock-in period has also contributed to dissatisfaction among stakeholders, impacting Solana’s market stability and emphasizing the inherent volatility and risks associated with cryptocurrency investments.
Following the reports of the auction, there has been a negative sentiment in the market around Solana, with the SOL price retracing by 2.3%. However, the complete sale information has not been disclosed yet, leaving room for possible further decline. Despite this, some see this news as a bullish indicator for Solana’s future, with major players in the industry displaying renewed confidence in its long-term performance. The participation of Pantera Capital and other prominent bidders in the FTX estate auction has highlighted the attractiveness of Solana among institutional investors and the potential for further growth in the cryptocurrency market.
