Good or bad for Solana? 48.6 million SOL tokens belonging to Alameda Research were locked up

Good or bad for Solana 486 million SOL tokens belonging By Angel Di Matteo @shadowargel

Investigation in the context of bankruptcy filing by. FTX and its associated companies left some 48.6 million tokens blocked. SUN belonging to Alameda Research. These assets will remain in custody for some years until the companies complete the due process.

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  • 48.6 million tokens SOL are held by the liquidators of Alameda
  • Those tokens will be blocked until Alameda concludes the bankruptcy process.
  • SOL from Solana was one of the currencies hardest hit after the fall of FTX
  • Alameda was listed as one of the main users of SOL

Recently published reports indicate that, the liquidators responsible for Alameda Research would hold some USD $643 million in tokens. SUN from Solana, which will be out of circulation until said company completes its bankruptcy process as established by the authorities.

The information was compiled by the media DailyHodl, which cites data published by the firm Blockchain, Solana Compass. Here it is shown that the liquidators have in their possession some 48,636,772 SOL which originally belonged to Alameda Research, something that generated strong rumors of a selling pressure that could affect the native currency of the network of Solana.

SOL belonging to Alameda Research is blocked

Faced with the rumors that arose regarding these funds and the control of the funds, the team from Solana Compass clarified that these assets would most likely remain frozen for a long time, as these assets would only be returned to Alameda Research if, and only if, it duly complies with the provisions of the bankruptcy process as set forth in Chapter 11 of the associated law.

In this regard, Solana Compass indicates:

“Alameda no longer has the SOL, the liquidators have it. The SOL…is locked up and can’t be sold, often for many years. Regardless, Chapter 11 means that nothing can be sold until the bankruptcy is completed, which could take more than 10 years.”

The researchers also noted that as the law indicates, the tokens. SOL are blocked and therefore cannot be offered for sale on the open market, nor can the authorities or custodians of the assets. Therefore, it is assumed that these assets are no longer in circulation for the next few years.

The links between Solana y FTX

While Solana was one of the main projects at the time Blockchain With better prospects for the future, the chaos after what happened with FTX and its allied companies swept through the cryptocurrency market, but made its weight especially felt on the aforementioned project because of the links between Solana Labs and Sam Bankman-Fried Companies.

As such, one of the companies that bet heavily on the token. SOL was just Alameda Research, which apparently possessed about 10% of the total supply of the native currency of Solana, estimated at almost USD $1.2 billion in its balance sheets.

In view of the insolvency situation recorded by Alameda Research, the company has been forced to sell a large portion of its assets, which included mainly tokens FTT (issued by FTX) y SOL. This resulted in a steep drop in the price of the cryptocurrency from Solana, mainly due to a significant increase in supply over demand.

Added to this is a certain reputational effect following what happened with FTX. This happens because the exchange and associated companies have been listed as investors within the ecosystem of Solana, precisely to promote the adoption and development of its products and services.

As for the price of the SOL token, at press time it was trading at about USD $13.4 per unit, a figure that implies a 6.3% drop in the last 24 hours.


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Article by Angel Di Matteo / DiarioBitcoin

Image by Unsplash

WARNING: This is an informational article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that cryptoasset investments are not regulated in some countries. They may not be appropriate for retail investors, as the full amount invested could be lost. Please check your country’s laws before investing.

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