Cryptocurrency exchange FTX has recently shown confidence in Solana by staking over 5.5 million SOL coins on October 13. They sent these coins to Figment, a company that helps institutional investors with staking. The total value of these staked coins is $122 million, but this is just a small part of FTX’s Solana holdings.
Staking involves locking up a specific number of coins for a certain period, and in return, those who stake their coins receive SOL coin rewards for helping secure the network.
FTX has been an early investor in Solana and regularly receives a significant number of SOL coins according to their vesting schedule. The FTX estate, which is managed by a bankruptcy trustee, can choose to sell these holdings at any time. Their main job is to recover assets for the exchange’s creditors.
Back in September, a U.S. court approved the sale of $1.3 billion in SOL coins from FTX, which caused concerns about a drop in Solana’s price. To prevent this from impacting the crypto market too heavily, the bankruptcy court decided the sale should happen gradually through an investment adviser. This decision led to SOL’s price dropping to a two-month low of $17.34 on September 11.
FTX holds a significant amount of digital assets, with over $3.4 billion in Digital Assets A, including assets like Solana, Bitcoin, and other cryptocurrencies. According to court records from September, they’ve managed to recover over $7 billion since filing for bankruptcy protection in November 2022.
It’s worth noting that Sam Bankman-Fried, the co-founder of FTX, is currently facing trial in a Manhattan district court. He’s accused of fraud and conspiracy to commit fraud, and if found guilty, he could potentially face a prison sentence of up to 115 years.
