Solana traders prepare for FTX-induced sell pressure on SOL — Is it premature?

For a long time, Solana (SOL) has been associated with the creator of now insolvent crypto exchange FTX and hedge fund Alameda Research, Sam Bankman Fried. Considering that the start of 2023, Solanas rate staged a healing to get 175% to reach a peak of $27.37 as the community likewise experienced growth.However, more just recently, SOL came under remarkable selling pressure after the Delaware Bankruptcy Court authorized the sale of FTXs digital possessions, which consists of 55.75 million SOL worth $1.062 million. SOL rate acquired around 4% on Sept. 14 with longs worth $800,000 liquidated considering that yesterday, per CoinGlass data.Crypto trader MartyParty believes that offering pressure is overblown as the bulk of FTXs SOL stake is vested from 2025 to 2027. Many FTX tokens are lockedThe Solana Foundation had actually launched an update on FTXs Solana holdings after its collapse, which showed that a portion of SOL tokens held by the defunct exchange are locked until 2027. Source: Solana FoundationAccording to the terms of the crypto conversion to fiat by FTX, there will be a cap of $50 million for the very first week and $100 million in subsequent weeks, which restricts the selling pressure.There is an alternative to increase the limit but it requires prior written approval of the lenders committee and ad hoc committee or to raise the limitation to $200 million weekly with the approval of the court.Assuming that the financial institutions can offer all the SOL tokens, they d require around 10 to12 weeks to discharge their total holdings, which will distribute the selling pressure over weeks.In the meantime, the rate of SOL might show volatility on both sides, especially if the futures market presents an opportunity for market makers or high volume traders.

For a long time, Solana (SOL) has been associated with the founder of now insolvent crypto exchange FTX and hedge fund Alameda Research, Sam Bankman Fried. Considering that the start of 2023, Solanas rate staged a healing to gain 175% to reach a peak of $27.37 as the environment likewise experienced growth.However, more recently, SOL came under significant selling pressure after the Delaware Bankruptcy Court authorized the sale of FTXs digital properties, which includes 55.75 million SOL worth $1.062 million. SOL rate got around 4% on Sept. 14 with longs worth $800,000 liquidated because the other day, per CoinGlass data.Crypto trader MartyParty believes that selling pressure is overblown as the majority of FTXs SOL stake is vested from 2025 to 2027.

A lot of FTX tokens are lockedThe Solana Foundation had released an upgrade on FTXs Solana holdings after its collapse, which showed that a part of SOL tokens held by the defunct exchange are locked till 2027. It represents more than 60% of FTXs holdings to be sold in the market.FTX/ Alameda Researchs SOL holdings and unlock schedule. Source: Solana FoundationAccording to the terms of the crypto conversion to fiat by FTX, there will be a cap of $50 million for the first week and $100 million in subsequent weeks, which limits the selling pressure.There is a choice to increase the limitation however it needs prior written approval of the creditors committee and advertisement hoc committee or to raise the limit to $200 million weekly with the approval of the court.Assuming that the creditors can sell all the SOL tokens, they d need around 10 to12 weeks to dump their total holdings, which will distribute the selling pressure over weeks.In the meantime, the price of SOL might exhibit volatility on both sides, especially if the futures market presents a chance for market makers or high volume traders.