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FTX Bankruptcy Estate to Auction Remaining Solana Tokens
FTX creditors are being encouraged to participate in the upcoming auction of the defunct exchange’s remaining Solana token holdings. Figure CEO Mike Cagney recently announced that the next round of FTX’s locked Solana token sales would be conducted through auction, a departure from previous direct sales to venture capital firms.
Sunil Kavuri, a key FTX creditor, has called on retail investors affected by the exchange’s collapse to engage in the auction process. He highlighted Figure’s efforts to enable retail FTX creditors to participate with a minimum investment of $5000, compared to the $5 million required for direct purchases from FTX.
Special-Purpose Vehicle for Auction Participation
Figure Markets intends to establish a special-purpose vehicle (SPV) for participation in the auction. Accredited US and non-US investors will have the opportunity to join the SPV after completing a mandatory Know Your Customer (KYC) process.
The SPV will involve community consensus in determining bid prices and managing subsequent investments. Accepted forms of investment will include the US Dollar, USD Coin stablecoin, Bitcoin, and Ethereum.
As of the present, the defunct exchange has not disclosed additional details regarding the auction process.
Controversy Surrounding Discounted Solana Token Sales
The SOL tokens represent a significant portion of FTX’s cryptocurrency holdings, with the exchange actively selling them at discounted rates. A recent sale of SOL tokens at $64 per token realized $1.9 billion, significantly below the current market value.
These discounted sales have drawn criticism from FTX creditors, who argue that the move has diminished the value of their holdings. Kavuri expressed discontent, stating that the sales have negatively impacted FTX creditors and that legal action is being pursued to address the situation.
Despite the ongoing controversy, FTX’s bankruptcy estate is proceeding with the auction of its remaining Solana tokens, signaling a crucial phase in the resolution of the exchange’s collapse.
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