Ethereum

Cryptocurrency

Solana

Aptos

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 <p class="paragraph">Earlier this week, the crypto market was rattled by a wave of bearish sentiment as the collapsed crypto exchange FTX took a pivotal step in its bankruptcy proceedings. FTX had sought the court’s approval to liquidate a staggering $3 billion in cryptocurrency holdings, predominantly comprising Solana (SOL) tokens.&nbsp;</p> 
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 <p class="paragraph">Now, the judge overseeing the case has officially granted FTX the green light for this massive liquidation.</p> 
 <p class="paragraph">This development has sparked fresh concerns among crypto enthusiasts, who fear that such a substantial sell-off could exert downward pressure on the price of SOL, the native token of the Solana blockchain.</p> 
 <h2 class="wp-block-heading" id="h-what-happened">What happened?</h2> 
 <p class="paragraph">The once-popular crypto exchange FTX which imploded in November 2022, received permission from the US judge John Dorsey on September 13 to sell <a rel="dofollow" title="billion" href="https://thebittimes.com/tag/billion.html">billion</a>s in crypto assets.&nbsp;</p> 
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 <p class="paragraph">The ruling gave the company the green light to liquidate a total of $3.4 billion in Solana (SOL), Ethereum (ETH), Bitcoin (BTC), and other crypto assets.&nbsp;</p> 
 <p class="paragraph">As a result, FTX will be able to raise fresh capital from the sales and begin paying back to affected creditors; however, a footnote on the court order emphasized that sales and redemptions of these assets will not count toward the $100 million weekly limit.</p> 
 <p class="paragraph">Calculation of this limitation will also disregard transactions conducted to bridge tokens from non-native blockchains back to their native networks.&nbsp;</p> 
 <p class="paragraph">According to a September 11 court filing, FTX currently owns $1.16 billion in SOL, making it by far its biggest crypto holding. Additionally, the embattled exchange also holds $560 million in BTC, $192 million in ETH, and $137 million in Aptos (APT).&nbsp;</p> 
 <h2 class="wp-block-heading" id="h-will-this-affect-sol-s-price">Will this affect SOL’s price?</h2> 
 <p class="paragraph">The reports that FTX got the nod to begin liquidating its crypto holdings led to fears among investors that its next steps could hurt the cryptocurrency <a rel="dofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a>s, particularly Solana.</p> 
 <p class="paragraph">However, even though it owns over $1 <a rel="dofollow" title="billion" href="https://thebittimes.com/tag/billion.html">billion</a> in SOL, the liquidation is unlikely to make a significant impact on the token’s <a rel="dofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a>.&nbsp;</p> 
 <p class="paragraph">This is primarily because FTX has only secured <a rel="dofollow" title="approval" href="https://thebittimes.com/tag/approval.html">approval</a> to sell those assets in batches, meaning a large portion of its SOL holdings will remain locked up and unavailable for sale for years.</p> 
 <p class="paragraph">Even though FTX holds roughly 15% of Solana’s entire circulating supply, the crypto exchange is allowed to sell just $100 million of all crypto per week.&nbsp;</p> 
 <h2 class="wp-block-heading" id="h-solana-price-analysis">Solana price analysis</h2> 
 <p class="paragraph">At press time on September 15, SOL was changing hands at $18.91, up 0.22% in the past 24 hours.&nbsp;</p> 
 <p class="paragraph">The altcoin fell more than 3.5% on the week and over 23.6% in the past month, wiping about $1.7 billion off its market cap.</p> 
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   SOL 1-month price chart. Source: Finbold
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 <p class="paragraph">Solana displayed signs of recovery this week, but the price prediction algorithm on <em>PricePredictions.com </em>is not very bullish on its short-term price action. Notably, the platform predicted SOL to trade at $17.57 on September 30, implying a potential downside of 7%.&nbsp;</p> 
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em>&nbsp;The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p> 
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<p>Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/solana-price-at-risk-ftx-wins-approval-to-offload-1-6-billion-sol-tbt62881.html">https://thebittimes.com/solana-price-at-risk-ftx-wins-approval-to-offload-1-6-billion-sol-tbt62881.html</a></p>

Solana price at risk? FTX wins approval to offload $1.6 billion SOL

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