FTX Initiates Blind Auction to Sell Remaining Solana (SOL) Holdings

FTX, the defunct cryptocurrency exchange, is gearing up to auction off its remaining Solana (SOL) token holdings, according to insiders familiar with the matter. This "blind auction" is scheduled to take place this week, with bids due by April 24 and results expected to be disclosed the next day, as reported by Bloomberg.

The auction follows FTX's recent announcements regarding substantial token sales. In March alone, FTX liquidated about $307.6 million worth of SOL and ZBC tokens. On April 5, they further unloaded $1.9 billion in SOL tokens to key entities like Mike Novogratz's Galaxy Trading and Pantera Capital, with additional figures for April yet to be unveiled.

Mike Cagney, CEO of Figure Markets, affirmed the upcoming auction, highlighting it as an investment opportunity. Figure Markets is not only participating but also mobilizing funds for a special-purpose vehicle (SPV) to join the bidding.

Competing alongside are notable industry players including Pantera Capital and Abra. Abra CEO Bill Barhydt confirmed Abra's active involvement, while sources suggest Pantera Capital is deliberating whether to bid directly or through an SPV route.

These auctions stem from FTX's collapse in November 2022, as outlined in last year's filings that SOL comprised a significant portion of FTX's crypto reserves.

Although retail investors aren't direct beneficiaries of the auction, many are eyeing potential profits from ensuing price fluctuations within the market. At the time of this report, SOL was valued at $153.79, marking a 1.6% increase over the past 24 hours.

In a related development, FTX founder Sam Bankman-Fried has opted to participate in a class-action lawsuit involving FTX investors and celebrity endorsers. Bankman-Fried, currently serving a 25-year prison term for his role in FTX's downfall, remains a central figure amidst ongoing legal actions.

As FTX readies for this significant auction event, the cryptocurrency world eagerly awaits the outcome. With major industry players vying for SOL tokens, the repercussions of this sale will undoubtedly reverberate across the market, offering potential opportunities and risks for savvy investors and enthusiasts alike.

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