FTX and Alameda Research have just unlocked $23 million in Solana (SOL). Is a market shock on the horizon? Investors are on edge as the possibility of a massive sell-off looms. Are we headed for a crash or just a temporary turbulence?
Since the collapse of FTX, Alameda Research has been consistently moving large amounts of crypto assets. Since November 2023, FTX/Alameda has transferred 7.845 million Solana – over a billion dollars – to exchanges. Despite this recent transfer, their staking address still holds approximately 5.5 million SOL, equivalent to $693.8 million.
The broader FTX refund process has also led to the release of $1.57 billion worth of Solana tokens. However, despite this significant movement, the SOL price has remained largely unaffected. Why is that?
Unlike previous movements, the Solana price barely moved following the $23 million unlock by Alameda. Instead, the slight SOL fluctuations occurred before the transaction, driven by other market factors.
SOL Price over the last 7 days. Source : CoinGecko
One possible explanation is the broader bearish sentiment prevailing in the crypto market. The SEC’s delay on several Solana ETF proposals has added to the negative outlook, causing uncertainty. Meanwhile, extreme fear dominates the market, leading to heavy outflows from major cryptocurrencies.
Alameda has not yet revealed its plans for these freshly unlocked Solana tokens. One possibility is that they will be used for refunds to FTX creditors, a process started last month and expected to take time. Given the scale of FTX’s outstanding obligations, however, even significant token unlocks may not significantly alter the Solana supply-demand balance.
For now, this latest move by Alameda is just another chapter in the ongoing FTX saga. But with billions of dollars at stake, the market will be closely watching their next steps.
Solana’s future depends on several factors… The SOL price has seen significant volatility, prompting many investors to wonder if now is the right time to buy.
If you are considering buying SOL, here is an easy step-by-step guide :
Before investing, it is always recommended to thoroughly analyze the market and adjust your strategy based on trends and available liquidity.
Passionate about the crypto world, he explores the blockchain ecosystem to extract the most essential insights. With his expertise in SEO and web writing, he transforms news and technical analysis into clear, engaging, and impactful content. His goal? To help investors better understand the opportunities and challenges of the crypto market.
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