"Wintermute's $38M Solana Exit Sparks $2B Unlock Fears"

Wintermute's $38M Solana Withdrawal Sparks Fears Ahead of $2B Token Unlock

Crypto market maker Wintermute recently withdrew $38 million worth of Solana (SOL) from Binance, raising concerns about potential selling pressure on the token. This move comes just days before a massive token unlock event, where another $2 billion worth of Solana tokens are expected to enter circulation. Analysts are worried about the risk of big holders dumping unlocked tokens, further intensifying selling pressure.

Wintermute's withdrawal of more than $38.2 million in SOL from Binance between February 23 and 9:02 am UTC on February 24 has caught the attention of analysts and investors. The timing of this exit is particularly notable, as it occurs just over a week before Solana's largest token unlock event ever. On March 1, more than 11.2 million SOL tokens, equivalent to about $2 billion, are set to be put into circulation, increasing a significant portion of the circulating SOL supply and raising concerns about bearish price action.

Solana has already experienced a significant price correction, with the SOL price dropping more than 7.5% in the 24 hours leading up to February 24 to hit $155, its lowest level in three months. This price level had last been seen in early November 2021. However, the negative sentiment surrounding Solana can also be attributed to the pending token unlock, which has cast a cloud over the Solana ecosystem regardless of broader market conditions.

One of the major factors feeding the fears is that a considerable amount of the locked SOL supply was bought at a diluting discount during the FTX auctions. Companies like Galaxy Digital, Pantera Capital, and Figure purchased these tokens at a price point well below their current market value. Analysts worry that these firms may sell their holdings to secure profits, particularly in the current market climate.

Crypto analyst Artchick.eth noted that more than 15 million SOL, around $2.5 billion, would go into circulation over the 90 days following the unlock date. Artchick.eth also highlighted the difference in purchase price at the FTX auctions compared to its current market value. Crypto trader RunnerXBT shared similar sentiments, noting that the current timeframe