FTX, a crypto exchange, filed for bankruptcy in November 2022 after a financial crisis.
FTX's holdings include 58 million SOL tokens, which were valued at $1.16 billion in October 2023.
SOL's price has increased significantly since then, giving creditors hope of a 100% or more return.
In February 2022, FTX, a crypto exchange, was valued at a massive $32 billion. But things went south fast, leading to a big financial crisis.
Now, on November 2, 2022, CoinDesk reported that Alameda Research, a trading firm owned by Sam Bankman-Fried, had a surplus of FTT tokens from FTX. This raised questions about the close ties between Alameda and FTX, and revealed a shaky financial situation. To make matters worse, there were accusations of using FTX customers’ money for personal gain.
Nothing Can Hold SOL Back!
Within just nine days, both FTX and Alameda filed for bankruptcy. Sam Bankman-Fried got arrested and is now facing charges of fraud and conspiracy.
Currently, they’re working through the complexities of bankruptcy court. Surprisingly, creditors might get back 37 cents for every dollar they’re owed, which is better than expected given the tough situation a year ago.
What’s truly remarkable is the role of Solana (SOL) in this resurgence. FTX’s holdings consist of a substantial 58 million SOL tokens, with the majority, approximately 42.2 million, being currently locked and unavailable for immediate trading on the market.
Notably, just last month, reports emerged about FTX’s holdings, presented in the form of an official debtor venture portfolio, valuing the SOL holdings at $1.16 billion. However, since that time, SOL has made an impressive leap from around $20 per token to its current value of about $42.
The overall crypto market has also experienced a significant boost, even though it has yet to reach its previous $3 trillion peak in 2021.
Also Read: Solana Price Analysis: Will SOL Price Hit $50 Soon?
Hope for Creditors
As FTX’s SOL holdings unlock next year, creditors are more hopeful. With $10 billion in customer claims, experts think they could get back at least 80% of what they’re owed.
If SOL’s price keeps going up and reaches $50 to $60, the outlook gets even brighter, potentially giving creditors a 100% or more return.
Read More: Sam Bankman-Fried Trial: Did He Know About FTX’s $8 Billion Shortfall?
While most SOL tokens stay locked until 2027 or 2028, FTX’s comeback shows how unpredictable the crypto world can be. Solana’s impressive growth and the resilience of crypto markets continue to shape this ever-changing story.
Source: coinpedia.org