In the world of Bitcoin and altcoins, FTX is undoubtedly among the topics we talk about the most lately. There is an ongoing court process. On the other hand, it remained unclear what he would do with the crypto currencies he had. Today, it became clear what FTX will do and what action it will take for an altcoin it holds. Let’s look at the details together.
The altcoin crisis in FTX is slowly moving towards resolution.
We had a difficult 2022 for the cryptocurrency world. With the Terra incident and the FTX crash, the market was significantly damaged. On the other hand, 2022 was a year characterized by events that led to the decline of Bitcoin (BTC) and altcoin projects. A sense of optimism emerged in the early part of the current year 2023. However, recent trends point to a decline in the crypto asset market.
One of the most important events of 2022 was the bankruptcy of FTX. FTX, formerly the world’s second largest cryptocurrency exchange, has thrown the crypto industry into turmoil with its unexpected bankruptcy. FTX-affiliated crypto projects have threatened to collapse one after another. Altcoin Solana (SOL), a cryptocurrency backed by FTX, was also among those deeply affected by this turbulent period.
The situation becomes clearer for Solana
There were concerns among crypto investors that FTX might sell its holdings of SOL tokens. But despite these concerns, FTX has not liquidated SOL holdings so far. Recent reports indicate that FTX has repurchased $122 million worth of Solana (SOL) from its wallets located on the Solana blockchain. A significant amount of altcoin SOL allocated to the FTX platform is subject to a vesting schedule, with portions unlocked each month. The FTX team retains the option to sell these assets. However, the staking decision shows that FTX continues to have faith in SOL.
It has created significant challenges for the crypto industry, including the bankruptcy of FTX last year. But FTX’s recent actions regarding SOL reflect a flexible commitment to Solana. It also offers a positive outlook for cryptocurrency despite the challenges facing the industry. This move instills a sense of confidence in SOL and its growth potential in the coming year. On the other hand, there is another meaning that FTX will not sell the altcoin Solana. Accordingly, investors will no longer have the fear of selling for an altcoin. When we look at the Solana price at this point, we see that this positive development is not reflected in the price. When we look at the Solana price on cryptokoin.com while writing the article, it is traded at $ 21.98.
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