In Brief
On-chain data analysis platform revealed that FTX has moved 250,000 Solana tokens worth $10.83 million to the Binance crypto exchange.
Crypto trader Neel Kukreti has raised suspicions about Solana’s recent rally, hinting at potential price manipulation. Despite concerns, Kukreti emphasizes the broader market’s rally.
FTX, the bankrupt crypto exchange, reportedly transferred 250,000 Solana tokens (SOL) worth $10.83 million to Binance.
FTX Executes Full-Fledged Offloading of Solana
On-chain insights platform Spot On Chain shared on Twitter that FTX has deposited 250,000 SOL tokens to Binance at the price of $43.32.
It’s important to note that moving assets to centralized exchanges does not guarantee immediate sales. However, selling assets is a primary reason for transferring them to centralized exchanges in most cases.
Spot on Chain reports that FTX has sent approximately 5.74 million SOL, valued at around $223 million, to various centralized exchanges. FTX currently holds 1.25 million Solana tokens with a valuation of $54.5 million.
FTX has also been transferring other assets to centralized exchanges, including gaining court approval to sell $744 million worth of Grayscale and Bitwise Trust assets earlier this week.
In August, FTX enlisted digital asset management company Galaxy Digital as an advisor to reduce its crypto exposure.
Chances of Price Manipulation?
SOL was a major holding of the now-defunct FTX. The price rally, coinciding with FTX’s asset offloading plans, sparked speculations of price manipulations.
Renowned trader Neel Kukreti (Crypto Jargon) expressed concerns about potential price manipulations, citing familiar occurrences in the crypto market, especially around significant selling events.
Kukreti pointed out SOL’s suspicious price movement but emphasized that it aligns with the broader crypto market’s rally. He noted, “While SOL’s recent price movement appears somewhat suspicious, it’s essential to recognize that this trend mirrors the broader crypto market’s rally.”
“While it’s possible that SOL may have been nudged upward to some extent, it’s unlikely that price manipulation played a significant role. Nonetheless, the proximity of this rally to FTX’s potential selling activities raises legitimate concerns,” added Kukreti.
