The personal bankruptcy estate of defunct cryptocurrency exchange FTX has made the decision to provide its remaining locked Solana (SOL) tokens at auction hoping recovering a greater market cost than through network marketing. This news was initially announced by Mike Cagney, Chief executive officer of crypto exchange Figure Markets, on Twitter.
The auction represents a shift from previous token liquidation methods, which involved selling at fixed market prices. Recently, FTX started offloading its $7.5 billion stash of locked SOL tokens, frequently in a significant discount. For example, one transaction recorded a purchase of 26,964 SOL at $64 per token, a 67% markdown in the market price at that time.
Figure Markets, that is positively taking part in the auctions, is establishing a Special Purpose Vehicle (SPV) to permit both non-U.S. investors and accredited U.S. investors to sign up. The SPV will enable community-based decision-making on bid prices, where $1 equals one election. Your customers can invest using U.S. dollars, USDC, Bitcoin, and Ether.
Last summer time, FTX hired Universe Digital Chief executive officer Mike Novogratz since it’s investment manager and billed him with overseeing the purchase of $3.4 billion in Bitcoin, Ethereum, Solana, and many other cryptocurrencies.
Pantera, the $5.2 billion asset manager, was raising money for any Pantera Solana Fund to purchase as much as $250 million of SOL in the FTX estate at the begining of March. Later that month, Vancouver-based Neptune Digital Assets Corp. announced on March 27 it bought 26,964 SOL for $1.seven million.
The transition for an auction-based purchase method continues to be well-received by a few FTX creditors, particularly individuals who felt disadvantaged through the previous fixed-cost sales.
Suni Kavuri, an activist and vocal critic representing a few of the creditors, recognized the brand new method for supplying a far more accessible access point for smaller sized investors. The minimum investment is placed at $5,000, when compared to previous $5 million threshold for direct purchases.
S&C are adamant in selling FTX creditors locked Solana in a heavy discount to their personal clients (Universe), despite our objections
I’ve talked to @mcagney. He produced a structure to permit retail FTX creditors to sign up having a min. investment of $5000 versus. the $5m required… https://t.co/yut9Xub4O5
— Sunil (FTX Creditor Champion) (@sunil_trades) April 21, 2024
Kavuri is a staunch opponent of methods Sullivan & Cromwell—the law practice overseeing FTX’s personal bankruptcy proceedings—has managed the exchange’s assets. He argues the firm’s valuation methods have substantially undervalued them, thus harming the creditors’ potential recovery.
Kavuri’s grievances are members of a broader class-action suit against individuals involved with managing FTX’s personal bankruptcy estate, seeking reparation for that perceived diminishment from the creditors’ assets.
