Solana Has Crashed By 6% Amidst Fears Of A Massive FTX Dump

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The price of the cryptocurrency Solana went down by around 6% in the last 24 hours amidst fears that FTX, the bankrupt crypto exchange, could soon liquidate a large portion of the token- as well as other Solana-affiliated crypto assets. According to a combination of data that was received from Solscan, which then came up to the value of three publicly available FTX cold storage wallets, the estate of FTX does hold a combined sum of $1.5 billion in crypto assets on the entire network.

Amidst that huge figure, the tokens account for Solana is just at a paltry $128 million. The rest of the amount is an amalgamation of a bunch of Solana-based altcoins, which includes Maps token, Wrapped Bitcoin, Serum, and a bunch of other tokens which are usually known as Sam coins. 

Solana Could Potential Crash Very Hard

Still, the very idea that liquidators could potentially unleash a sum of $128 million worth of SOL and hundreds of millions worth of other affiliated tokens into the market doesn’t really inspire a lot of confidence in the market itself. Quite a number of Solana users went on X to voice their concerns over the sell-off which seemed to be impending.

One user commented that Solana was about to dump pretty hard after FTX sold the bag, where it might just reach 14$ soon. Other users have asked the cryptocurrency to exercise patience, as the plan for bankruptcy does restrict how much can be sold off at a single time. 

According to the bankruptcy filings by FTX, the proposed plan for the liquidation of the assets of FTX does impose quite a brunch of conditions on the sale of the tokens. On the 24th of August, FTX decided to appoint Galaxy Digital Capital Management as the Investment manager that would be overseeing the sale of its recovered crypto holdings.