FTX Estate Puts 5.5M Solana Coins at Stake
The FTX estate recently demonstrated its optimistic stance on Solana (SOL) by staking a substantial amount of the cryptocurrency. On October 13th, an FTX-identified wallet transferred over 5.5 million SOL to Figment, a staking validator firm catering to institutional investors. This transaction was brought to light by the blockchain tracker Whale Alert and successfully linked to an FTX estate address by the pseudonymous on-chain researcher, Ashpool. The value of the staked coins amounts to $122 million but represents only a fraction of FTX’s overall SOL holdings.
Staking involves locking up a predetermined volume of coins for a specified period. By doing so, staking participants are rewarded with additional SOL coins for their contribution to the overall network security.
FTX Estate’s Significant Investment in Solana
FTX has been an early investor in Solana. As stipulated by the established vesting schedule, the company regularly receives a considerable volume of unlocked SOL. However, since the FTX estate is overseen by a bankruptcy trustee, it has the option to liquidate their holdings at any given time. Nevertheless, the primary objective of the FTX estate is to recover assets for the exchange’s creditors.
In September, concerns arose among SOL holders when a U.S. court approved the sale of $1.3 billion worth of SOL from FTX. To prevent a significant price slump, the bankruptcy court required the sale to be conducted in weekly batches through an investment adviser. As a result, SOL’s price experienced a two-month low, plummeting to $17.34 on September 11th.
Currently, FTX holds approximately $3.4 billion in Digital Assets A, which constitutes one of the top ten assets within the company’s portfolio. In addition to Solana, FTX also maintains holdings in Bitcoin (BTC), Ether (ETH), Aptos (APT), and several other cryptocurrencies. Court filings from September indicate that over $7 billion has been recovered since FTX filed for bankruptcy protection in November 2022.
Sam Bankman-Fried, the co-founder of FTX, is currently facing trial at a district court in Manhattan. He stands accused of fraud and conspiracy to commit fraud, which, if found guilty, could result in a potential prison sentence of up to 115 years.
The Importance of Protecting Crypto Assets in a Volatile Market
In today’s volatile crypto market, it is crucial for investors to protect their digital assets. With the guidance of Bitcoin OGs and industry experts, it is possible to navigate through market uncertainties and safeguard one’s investments.
Tips for Protecting Crypto Assets:
- 1. Secure Your Wallet: Use a trusted and secure wallet to store your cryptocurrencies. Implement strong passwords and enable two-factor authentication for added security.
- 2. Stay Informed: Keep up with the latest news and developments in the crypto industry. Stay informed about potential risks and take proactive measures to mitigate them.
- 3. Diversify Your Portfolio: Don’t put all your eggs in one basket. Spread your investments across different cryptocurrencies to reduce risk exposure.
- 4. Use Stop-Loss Orders: Set up stop-loss orders to automatically sell your assets if they reach a certain price point. This can help limit potential losses during market downturns.
- 5. Be Cautious of Phishing Attempts: Be vigilant against phishing attempts and only interact with trusted websites and platforms. Avoid clicking on suspicious links or providing personal information to unknown sources.
By following these tips, crypto investors can better safeguard their assets in an unpredictable market.
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