FTX has once again indicated plans to sell off its Solana holdings, causing fresh concerns among investors.

FTX Unstakes SOL

According to Solscan data, 178,631 SOL tokens were unstacked from FTX's staking address. These tokens are being transferred across multiple wallets, potentially ending up on major exchanges like Binance and Coinbase. This follows FTX's regular SOL transfers, typically occurring between the 12th and 15th of every month.

Solana Liquidation

Following its 2022 collapse, FTX has been offloading its crypto assets to pay back creditors. In the last two months, FTX and Alameda Research transferred over 13 million SOL to crypto exchanges. Last November, an instance saw $160 million worth of SOL unstaked and moved. In April 2024, FTX sold over $1.9 billion in Solana at a major discount, with a May auction totaling a $2.6 billion sale.

Bankruptcy and Its Consequences

The sale of SOL is part of FTX's asset liquidation strategy agreed upon during the bankruptcy process. A court approved weekly crypto sales of $100 million, with a possible increase to $200 million. Asset sales, including Ethereum and Polygon, are expected to continue for creditor repayment.

FTX's active crypto asset sales heighten market fears and volatility, particularly affecting Solana.