FTX Initiates Movement of Solana (SOL) to Binance and Kraken
The FTX exchange has taken the first step in preparing for a potential sale by initiating the movement of 750,000 Solana (SOL) tokens, valued at approximately $30 million, to prominent cryptocurrency exchanges Binance and Kraken.
Impact on Solana’s Price
This significant move has had a notable impact on the price of SOL, leading to a 5% drop within a 24-hour period. The FTX estate, previously a cryptocurrency exchange, has already shifted a total of $102 million in SOL to various exchanges through a series of transactions. These movements are creating selling pressure on the token, affecting its market value.
SOL’s Position and Recent Performance
SOL holds a significant position on the FTX estate’s balance sheet, with a value exceeding $1.16 billion. Despite impressive growth, with a nearly 70% surge in the last month and a 10% year-on-year increase, SOL has faced recent setbacks. As the anniversary of the FTX collapse approaches, the price has dropped by 15% from a 14-month high, indicating a potential loss of momentum due to the looming sell pressure.
Market Reaction and Legal Developments
It’s crucial to note that unstaking and transferring tokens to exchanges are typically the initial steps in the process of liquidating assets. However, as of now, the estate has not made any sales. Earlier this year, the Securities and Exchange Commission (SEC) raised concerns by alleging that Solana might be classified as a security.
Market volatility eased when the Solana Foundation publicly disputed the SEC’s allegation. Additionally, Ripple secured a partial victory in a separate case against the SEC, which legal experts considered a setback in the commission’s broader crackdown on cryptocurrencies.
