Funds Worth 10 Million Dollars in Solana Tokens Transferred from FTX-Linked Wallet to Binance – Potential Impact on SOL Price?

Crypto News– The wallet linked to the cryptocurrency exchange FTX initiated a transfer of Solana (SOL) tokens worth $10 million on Wednesday. This action is part of their strategy to liquidate the cryptocurrency assets held by FTX and Alameda Research to repay their creditors.

Funds Worth 10 Million Dollars in Solana Tokens Transferred from FTX-Linked Wallet to Binance – Potential Impact on SOL Price?

In September, FTX and Alameda were subjected to a court order mandating the liquidation of their crypto assets, which were valued at $3.4 billion. To mitigate any substantial impact on market prices, the debtors had announced their intention to gradually sell these assets.

SOL Price Declines During Asset Liquidation

On October 28, PackShieldAlert reported that an FTX-associated wallet address moved approximately 309.2k SOL tokens, valued at over $9.9 million. A substantial portion of these tokens, nearly 244k SOL, was transferred to the cryptocurrency exchange Binance.

This transfer occurred at a time when Solana’s price had experienced a remarkable 70% rally during the month of October. This surge in price enabled FTX Debtors to liquidate a larger portion of their SOL holdings. Former FTX CEO Sam Bankman-Fried testified that he had started purchasing Solana when its price was a mere $0.20.

Today, CoinGape Media reported that FTX and Alameda have successfully sold tokens worth $14.4 million to various exchanges. According to data from Spot On Chain, FTX and Alameda Research still retain cryptocurrency assets worth $736 million in the Ethereum Virtual Machine (EVM) ecosystem, despite recent deposits to several crypto exchanges over the past few days.

In September, a Delaware Bankruptcy Court approved a plan proposed by FTX Debtors to liquidate crypto assets worth $3.1 billion that were held at FTX and Alameda Research.