Solana Falls Amid FTX Fears

Solana (SOL) has dropped more than 6% in the last 24 hours, on expectations that bankrupt crypto exchange FTX may soon sell its considerable holdings of the token and other Solana-related crypto assets.

According to data from Solscan, which summed up the value of the three publicly available FTX cold storage wallets, the FTX estate possesses a total of $1.5 billion in crypto assets on the Solana network.

Solana tokens account for only $128 million of the massive sum.

The remaining funds are made up of a variety of Solana-based altcoins, including Wrapped Bitcoin (WBTC), Maps token (MAPS), Serum (SRM), and a number of other tokens commonly referred to as "Sam coins" — a reference to former FTX CEO Sam Bankman-Fried.

Still, the prospect of liquidators dumping $128 million in SOL and hundreds of millions in other SOL-related tokens on the market hasn't instilled much trust in the market.

Several users flocked to X (previously known as Twitter) to express their concerns about the upcoming sell-off. "FTX about to dump $680 million in SOL," one user said. "SOL is going to dump hard after FTX sells its bag, and it's going to reach 14$ soon," another added.

Others have instead urged patience and calmness, as the bankruptcy plan restricts how much tokens can be sold off at once.

Sources:

https://cointelegraph.com/news/solana-price-down-amid-ftx-liquidation-fears

https://coinmarketcap.com/currencies/solana/

https://twitter.com/DU09BTC/status/1700821169958486020

https://twitter.com/tradersamuraii/status/1700771371649782069