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

Wintermute, a prominent crypto market maker, has withdrawn nearly $40 million worth of Solana (SOL) from Binance in the past 24 hours, raising concerns about the potential impact on the overall market sentiment and price stability of SOL. This withdrawal comes just over a week before Solana's largest token unlock event, which could intensify selling pressure on the market.

The withdrawal of $38.2 million worth of Solana from Binance by Wintermute has sparked concerns about the potential impact on the overall market sentiment and price stability of SOL. This event comes just over a week before Solana's largest token unlock event, which could introduce significant selling pressure on the market. The token unlock, scheduled for March 1, 2025, will release over 11.2 million SOL tokens worth approximately $2 billion into circulation.



The upcoming token unlock may add significant selling pressure for Solana, as a substantial portion of the locked supply was purchased at FTX auctions at a discount compared to today's price. Crypto analyst Artchick.eth noted that over the next three months, more than 15 million SOL — worth roughly $2.5 billion — will enter circulation. Many of these tokens were purchased at $64 per SOL in FTX's auctions by firms such as Galaxy Digital, Pantera Capital, and Figure.



The recent Libra (LIBRA) memecoin scandal, where insiders allegedly siphoned over $107 million worth of liquidity in a rug pull, has further undermined investor confidence in the Solana ecosystem. This event, along with other memecoin rug pulls, has eroded trust among investors and negatively impacted the overall sentiment towards Solana.



In conclusion, Wintermute's withdrawal of $38 million in SOL, combined with the upcoming token unlock and negative market sentiment, could lead to increased selling pressure and potential price instability for SOL in both the short and long term. Traders should be prepared for these potential consequences and consider hedging strategies or using potential price dips to their advantage.