Alameda Research, the cryptocurrency arm of the bankrupt FTX, has moved a significant amount of Solana ($SOL) holdings again after nearly five years. According to information reported by the on-chain data platform Onchain Lens, Alameda unlocked 201,740 $SOL, removing it from its staking position, and then transferred a total of 201,780 $SOL to a BitGo-owned custodial wallet.
The transfer has reinforced expectations that Alameda is preparing to divest its long-dormant $SOL holdings. On-chain data suggests the transaction may have been conducted for over-the-counter (OTC) sale via BitGo, rather than a direct sale of the tokens on exchanges.
OTC transactions stand out as a preferred method, especially for selling large amounts of crypto assets. Since conducting large-scale transactions directly in open markets can create sudden selling pressure on prices, institutional investors and large portfolio owners often utilize OTC markets.
Alameda’s release of $SOL assets that had been staked for approximately five years also increases the significance of the transfer. Releasing assets locked in staking transactions allows their owners to reuse or sell them.
While it’s stated that the transfer doesn’t necessarily mean a sale, the movement to BitGo’s custodial wallet is being closely watched in the crypto market. The liquidation of assets in the Alameda and FTX bankruptcy proceedings continues to be a significant topic in the crypto market in recent years.
Large $SOL transfers, in particular, can be interpreted by market participants as an indicator of potential selling pressure. Whether Alameda will actually sell these assets via OTC is yet to be confirmed.
*This is not investment advice.
