Solana Drops 3.083% Amid FTX/Alameda, “Pump” Selling Pressure
3min read Solana's latest price was $127.91, down 3.083% in the last 24 hours. This decline is part of a broader trend of selling pressure that has been affecting the cryptocurrency market. Two major entities, FTX/Alameda and an unknown seller referred to as “pump,” have been significant contributors to this pressure. FTX/Alameda has been selling Solana since November 2022, with a total of 8.031 million SOL sold. This selling activity has become a predictable market event, occurring around the 10th of each month, with approximately 180,000 SOL being sold or transferred each time. This consistent selling pressure has raised concerns about Solana’s price prospects and has contributed to a bearish market sentiment. FTX/Alameda acquired Solana as part of its crypto investments back in 2020, and their selling activities have had a significant impact on the market.
Another key player contributing to the selling pressure on Solana is an entity known as “pump.” This seller has been active since the beginning of 2024, unloading a total of 3.403 million SOL over the past year. Unlike FTX/Alameda, “pump” has a more erratic selling pattern, typically occurring once every 1 to 2 weeks, with roughly 100,000 SOL being sold each time. The identity and motives of “pump” remain unknown, adding an element of intrigue to the situation. The frequent large sales by “pump” have made Solana’s price very unstable, with each sale putting downward pressure on the price.
The combined selling from FTX/Alameda and “pump” raises serious questions about Solana’s price trajectory. Even with these assets offloaded, it is hard to see how Solana could be anything other than a prime candidate for long-term price devaluation. The continued selling from FTX/Alameda, in particular, is significant because it has been taking place since the collapse of FTX in late 2022. The unpredictable selling behavior of “pump” adds yet another layer of complexity to an already complex situation.
Despite these challenges, Solana shows that it has a sturdy backbone and good community support. With its low fees, high transaction capacity, and potential for future scalability, Solana remains a project for the long run. The increasing number of partnerships and the growing adoption of its blockchain technologies could very well lead to Solana experiencing a revival in the decentralized finance (DeFi) space. In the end, how Solana moves will depend on various factors, including market conditions, investor sentiment, technological developments, and regulatory decisions.
In a recent development, a newly launched token on the Solana blockchain, $BANG, exploded by 30,000% just six hours after its debut. The memecoin, which combines politically charged satire with viral internet culture, has quickly amassed a $15 million market capitalization and racked up a staggering $28 million in trading volume. $BANG is set apart from other memecoins by its distinctly political edge, resisting U.S. hegemony while mocking the geopolitical messaging of China. It draws direct inspiration from the meme content that is often seen in Chinese diplomacy and social media.
Within hours of the launch, the branding and meme-inspired energy of $BANG was circulating rapidly on social media platforms and among Solana communities. The creators of the token seem to be entirely embracing the premise’s absurdity, with the project having a satirical nature that straddles the line between political parody and chaos marketing. The token was seeded with liquidity promptly and got listed on two centralized exchanges—LBank and MEXC—almost as quickly as it had gotten in the gate. These were solid, momentum-building moves for $BANG.
Similar to all explosive memecoin introductions, the current issue with $BANG is whether it can maintain the kind of positive forward motion that sees upward-trending tokens safely escape the gravitational pull of token downturns. $BANG has a potential edge because of its cultural playbook, placing value on a narrative twist and tying itself to principles of global power dynamics and political internet memes. This could lend the project more staying power in a group of identical meme plays if it doesn’t fizzle out in the next bull run.
In a shift that fits well into its monthly asset liquidation pattern, the bankrupt crypto exchange FTX and its sister trading company Alameda Research have once again begun a large-scale transfer of Solana (SOL) from their staking reserves. About six hours ago, they unstaked and spread across 22 separate addresses 186,000 SOL tokens. This follows a long-established pattern of on-the-10th-of-the-month moves that increasingly look like a systematic, strategic unwind of SOL holdings. Many see the unstaking and redistribution as preparation for a liquidation of assets, supported by the historical record of past transactions.
Starting in November 2023, the estate of FTX/Alameda has executed transfers with notable consistency. In total, they have unstaked and staked back to the system 8.031 million SOL tokens. The transfers into the centralized exchanges have occurred at an average price, with the price of SOL ranging during the various phases of this market. Despite being intended to maximize recovery amounts for creditors, the series of large-scale redemptions from the FTX estate have vexed SOL holders and traders. Each time creditors cash out, they do so with substantial amounts of SOL, pressing the sell button on FTX’s preferred asset. The digital assets held by FTX have been steadily liquidated since the exchange’s spectacular collapse in November 2022, with billions in frozen user funds tied up across trading accounts at the time. Founder Sam Bankman-Fried’s financial mismanagement and the global fallout from it have been the main story of the last eight months. While the court cases move forward, the estate of the exchange has been granted permission to sell off assets to recover funds for creditors.
