Bloomberg: Pantera Capital Acquires Additional Solana Tokens in FTX Bankruptcy Auction

Pantera Capital, the pioneering US crypto fund, has emerged as a winner in the FTX bankruptcy auction by securing a portion of the locked Solana tokens. According to Bloomberg, Pantera, along with other bidders, acquired 2,000 SOL tokens during the auction. FTX, once a leading cryptocurrency exchange, filed for bankruptcy in 2022, resulting in its crypto holdings being locked. Among these holdings, Solana (SOL) accounted for the majority, with over 41 million tokens set to be liquidated. However, these tokens are subject to a pre-agreed vesting period and cannot be traded on the market immediately. They will gradually become available over the next four years. Institutional investors have shown significant interest in these locked SOL tokens, hoping to capitalize on the opportunity to obtain Solana at a discounted price. Pantera Capital, a US hedge fund and venture capital firm managing $5.2 billion in digital assets, has been actively raising funds since March to create a dedicated fund for purchasing up to $250 million worth of locked Solana from the FTX estate. Pantera’s success in acquiring some of the SOL tokens during the recent auction, along with Galaxy Digital, at a price significantly lower than the trading price, further demonstrates their keen interest in Solana. While the exact price of the tokens sold in the auction has not been disclosed, it will be made public soon. The discounted sales during the auction have raised concerns about FTX’s ability to repay its debts and have led to accusations of creditor rights violations. Additionally, the locked sale terms spanning four years have caused dissatisfaction, impacting the market stability of Solana and highlighting the inherent volatility and risks associated with cryptocurrency investments. The negative sentiment surrounding Solana following the auction is evident in the 2.3% retracement of the SOL price since the publication of the news. However, some view this development as a bullish indicator for Solana’s future, as it demonstrates the renewed confidence of major players in the cryptocurrency space.