FTX’s bankruptcy estate is preparing for a pivotal move by auctioning a significant batch of Solana (SOL) tokens. This strategy forms part of FTX’s liquidation process initiated after its collapse in November 2022.
The upcoming auction, which diverges from previous fixed-price sales, is a strategic shift signaling potential changes in market dynamics.
Will the Crypto Community Participate in the Solana Auction?
Previously, between 25 million and 30 million SOL tokens were sold, netting nearly $1.9 billion. These were priced at $64 each, a sharp 60% discount from the market price then. However, the discount came with a trade-off, i.e., the buyers had to lock their SOL for four years.
“Basically you’re exchanging time for a discount — you have to lock up your capital for four years, but you get to pay much less for the tokens,” Eva Weng, from Caladan, said.
The decision to opt for an auction this time around could foster competitive bidding, possibly influencing Solana’s market price. Mike Cagney, CEO of Figure Markets, confirmed the auction, but the final details are still under wraps.
Read more: How to Buy Solana (SOL) and Everything You Need To Know
Cagney’s Figure Markets is developing a Special Purpose Vehicle (SPV) to facilitate the crypto community’s participation in the auction. This mechanism is designed to attract both non-US and accredited US investors. It allows them to engage in community consensus to decide on bid prices and manage subsequent investments.
The auction format might escalate bidding fervor, with a probability of implications on Solana’s pricing trends.
Currently, Solana’s price trajectory is on a possible upturn. After reaching a high of $210 on March 18, the Solana price dropped significantly by over 44%, hitting a low of around $116 on April 13. Nevertheless, it has rebounded, trading nearly 30% higher from that low.
This recovery is crucial as Solana tests major resistance levels near $156. This level is significant, marking a key Fibonacci retracement point.
Solana (SOL) Price Performance. Source: TradingView
If Solana manages to maintain a position above $156, it could see a rise of 22% to approximately $185, tapping into the 0.786 Fibonacci level. Conversely, if it fails to overcome this barrier, the price might find support at $145.56.
Read more: Solana (SOL) Price Prediction 2024/2025/2030
“Solana at $148 is insanely under valued,” Rollbit’s Dan Borovik said.
