Key Takeaways:
FTX and Alameda Research have unlocked a significant amount of Solana tokens, marking their largest unlock since late 2023.
FTX’s unstaking activity coincides with its creditor repayment process, which began on February 18.
The ongoing token unlocks could impact market sentiment, with more similar events expected in the coming months.
Defunct crypto exchange FTX and its trading arm, Alameda Research, have unstaked and distributed over 3 million Solana (SOL) tokens, marking their largest SOL unlock since November 2023.
The move has renewed concerns over potential market impact as the firms continue their asset liquidations.
FTX and Alameda Unstake $431.4M in Solana
According to the Lookonchain report on March 4, the SOL tokens valued at approximately $431.4 million, were distributed across 37 wallets, sparking speculation about potential sales.
Since the unstake, around 25,000 SOL (worth $3.3 million) has already been deposited on Binance, suggesting a portion of the assets may be sold on the open market.
Spot On Chain highlighted that this latest unstake is part of a broader pattern observed since FTX’s collapse, with the firm unstaking and transferring large amounts of SOL at regular intervals. This is typically between the 12th and 15th of each month, with amounts reaching 170,000 SOL.
According to blockchain analysts, the latest unstake is part of a larger portion of 11.2 million SOL (worth nearly $2.06 billion) set to be unlocked in early March.
To date, FTX and Alameda have unstaked and liquidated approximately 7.83 million SOL since November 2023.
Data indicates that around $986 million worth of SOL has been deposited to Coinbase and Binance at an average price of $125.8.
FTX’s Court-Imposed Limits on Liquidations, Creditor Repayments, and Market Impact
Despite the large unstake, FTX cannot conduct unrestricted asset sales due to court-imposed limitations.
In September 2023, the Delaware Bankruptcy Court approved a liquidation plan that restricts FTX’s digital asset sales, allowing a maximum of $50 million in the first week and increasing to $100 million in the following weeks.
If the exchange wishes to sell beyond this limit, it must seek court approval to raise the cap to $200 million per week.
FTX’s unstaking activity coincides with its creditor repayment process, which began on February 18.
The firm has initiated the distribution of $1.2 billion to smaller claim holders, with the first phase targeting claims under $50,000.
Larger creditors may receive up to 175% of their claims, but distributions are expected to be staggered throughout 2025.
FTX’s reorganization plan, effective January 3, mandates that all creditor repayments be processed within 60 days of the effective date.
The firm has partnered with crypto custodian BitGo to handle fund distributions, pegging payouts to November 2022 crypto prices.
Since then, Solana has surged over 1000%, from $22 to recent highs above $280.
Will the Market React?
Historically, large token unlocks have influenced Solana’s price.
In September 2024, when FTX unstaked over $1 billion in SOL, the token held steady near $137.77 and even reached an intraday high of $139.76.
https://twitter.com/lookonchain/status/1834498508478693526
However, market sentiment remains different this time.
A portion of the 24,799 SOL ($3.38M) has already been deposited on Binance, hinting at potential selling pressure.
Furthermore, more unlocks are expected in April and beyond, raising concerns about continued volatility.
Adding to the uncertainty, asset managers like Pantera Capital previously sought to acquire $250 million worth of SOL from FTX at a 39% discount, but no similar deals have been reported for the current unlocks.
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