FTX Alameda Unstakes 188,000 SOL Worth $31.5 Million For Creditor Repayment

In the ongoing bankruptcy proceedings of FTX and Alameda Research, the estate has been actively liquidating assets to repay creditors. Recently, an address linked to the FTX Alameda estate unstaked a significant amount of Solana (SOL) tokens. According to on-chain analyst observations, the estate unstaked 188,000 SOL, valued at approximately $31.5 million at the time of unstaking. These funds were then distributed across 30 different blockchain addresses.

This is not the first instance of such activity from this address. The FTX Bankruptcy estate has been managing its SOL holdings for some time, with the primary goal of gathering funds to compensate creditors affected by the collapse of FTX and Alameda Research. The process involves unstaking the tokens, making them transferable, and then moving them to exchanges for potential sale.

The distribution of the unstaked 188,000 SOL across 30 different addresses is a typical step in preparing for potential sales. Historical on-chain data from this FTX Alameda address suggests that funds moved from these intermediary addresses typically end up being transferred to major cryptocurrency exchanges. Common destinations have included platforms like Coinbase and Binance. Transferring large amounts to exchanges is usually a precursor to selling, indicating that this $31.5 million worth of SOL is likely being prepared for potential liquidation on the open market.

This recent unstaking is part of a larger, ongoing process. Since November 2023, the main FTX Alameda address has unstaked and moved a staggering amount of SOL, totaling 8.407 million SOL, valued at approximately $1.094 billion. This historical data highlights the significant impact the FTX/Alameda liquidation has already had, and continues to have, on the supply side of Solana SOL in the Crypto market.

Despite the substantial amount already moved, the FTX Bankruptcy estate still holds a considerable amount of Solana SOL in staking. As of the latest reports, 5.046 million SOL, valued at approximately $726 million, remains staked at the address. This indicates that the liquidation process is far from over, with the estate still controlling a large reserve of SOL that could potentially be unstaked and moved in the future, depending on market conditions, creditor demands, and the court’s directives.

For investors and traders in the Crypto market, tracking these large movements from the FTX Alameda Bankruptcy estate is crucial. When large holders like the FTX estate move assets to exchanges, it often signals an intent to sell. Large sales can increase supply on exchanges, potentially leading to downward pressure on the price of Solana SOL, especially if the market demand doesn’t absorb the selling volume quickly. Staying informed about these movements can help investors and traders make more strategic decisions, such as monitoring order books and trading volumes for SOL on major exchanges and considering the potential impact of large sell orders on their entry or exit points.

Predicting the exact timing and impact of these sales is challenging. The estate may sell gradually, use over-the-counter (OTC) desks, or wait for favorable market conditions. The distribution across multiple addresses can also make precise tracking difficult. However, given the significant amount of Solana SOL still held by the FTX Bankruptcy estate, further unstaking and movements can be anticipated in the future. The pace and scale will likely depend on the estate’s liquidation strategy, the progress of creditor repayments, and potentially the market price of SOL. Market participants should continue to monitor on-chain activity related to addresses known to belong to the estate, as these movements remain a key factor influencing the supply dynamics of Solana SOL in the Crypto market.