Javier Hernandez Blockchain data has revealed a significant transaction involving the trustees of the insolvent FTX exchange, who are responsible for its bankruptcy management. They have allocated 5.5 million Solana (SOL) tokens for staking purposes. The current market valuation of FTX’s entire Solana holdings stands at an impressive $1.16 billion. It is important to note that a large portion of these assets are subjected to a lock-up schedule and will not become fully liquid until the year 2028.
Whale Alert, on the date of October 13, disclosed a transfer involving 5.5 million SOL. In the wake of this announcement, on-chain investigator Ashpool confirmed that this significant sum of SOL was the property of the FTX estate. Ashpool further elaborated that these funds were channeled to the Figment validator for the specific aim of staking.
The returns from staking SOL are subject to variability. Some analyses indicate that the annual percentage yield (APY) from SOL staking has historically been around 5.5%. Conversely, other reports claim that the APY could climb as high as 14.47%, depending on the staking platform selected. The rewards for staking in the Solana network are generally disbursed every 2-3 days, although the exact frequency can vary due to network conditions and other influencing factors.
The FTX estate possesses approximately $1.16 billion in SOL, but this amount is not fully liquid. 12 million SOL from FTX’s holdings are slated for incremental release every 30 days through 2027. Additionally, another tranche of 34.52 million SOL is programmed for a phased release every month until 2028. Both of these tranches are releasing monthly SOL that the FTX estate has the discretion to either stake or liquidate. Moreover, FTX retains the option to sell the access keys to the entire vested sum prior to its full release.
We invite you to share your perspectives and analyses on the FTX estate’s commitment of 5.5 million SOL for staking in the comments section below.
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Frequently Asked Questions (FAQs) about FTX Estate
What is the significance of the 5.5 million SOL staked by the FTX Estate?
The FTX Estate, which is currently undergoing bankruptcy proceedings, has committed 5.5 million Solana (SOL) tokens for staking. This is notable not just for the sizable amount but also because the current market value of FTX’s entire Solana holdings is $1.16 billion.
Who reported the staking of 5.5 million SOL by the FTX Estate?
The staking transaction was first reported by Whale Alert on October 13. Subsequently, on-chain researcher Ashpool confirmed that this sizable sum of SOL belonged to the FTX Estate.
What are the potential returns from SOL staking?
The annual percentage yield (APY) from staking SOL can vary. Some sources state that it has traditionally been around 5.5%, while others suggest it could go as high as 14.47%, depending on the chosen staking platform.
Are the FTX Estate’s SOL assets immediately accessible?
No, a large portion of the FTX Estate’s SOL holdings are subject to a lock-up schedule. Specifically, 12 million SOL are set for incremental release every 30 days through 2027, and an additional 34.52 million SOL will be gradually unlocked every month until 2028.
Does FTX have options beyond staking or waiting for asset release?
Yes, the FTX Estate retains the option to sell the access keys to the entire vested sum of SOL prior to its full, scheduled release. This provides them with additional flexibility in managing their assets.
How often are rewards from SOL staking disbursed?
Rewards for staking in the Solana network are typically distributed every 2-3 days. However, the exact frequency can fluctuate based on network conditions and other variables.
How was the staking transaction identified?
The staking transaction was identified through blockchain data, and its details were confirmed by on-chain researcher Ashpool, who noted that the funds were directed towards the validator Figment for the purpose of staking.
More about FTX Estate
- Solana Official Website
- Whale Alert Twitter Feed
- Ashpool’s Research Publications
- FTX Official Announcement on Bankruptcy Proceedings
- Figment Staking Platform
- Solana Staking Rewards Overview
- Bankruptcy Law and Cryptocurrency Assets
- Understanding SOL Staking Yields
- Current SOL Market Value
8 comments
Wow, 5.5 million SOL, that’s huge! I can’t believe FTX’s trustees are making such moves while in bankruptcy. Risky but could be rewarding too.
With those kinds of funds, FTX could significantly impact the Solana network. This is not just about FTX, it’s about the entire SOL ecosystem.
1.16 billion in assets and still in bankruptcy? Seems like they’re sitting on a treasure chest but can’t use it. The lock-up till 2028 is pretty intense.
bankruptcy and crypto, what a complicated mix. How are they even allowed to stake in the midst of bankruptcy proceedings? isnt that like, risky asset management?
So they can either sell or stake the released SOL. wonder what they’ll choose to do. Both have pros n cons.
Ashpool confirmed it huh? That guy is always on top of things. Good to know this is legit and not some random transaction.
Im not so sure this is a smart move. Staking has its benefits but its also risky, especially for a bankrupt estate. what happens if the market crashes?
staking in Solana has always been good for me, around 10% APY. FTX must’ve done their homework before dumping this much into it.