The crypto world is closely watching a major event tomorrow: the unlocking of 11.2 million Solana (SOL) tokens from the FTX bankruptcy estate. According to Messari, this release will increase circulating SOL supply by 2.2%, valued at over $1 billion. But what does this mean for the market?
Why Does FTX Hold So Much Solana?
For those new to crypto, FTX’s massive SOL holdings trace back to its founder, Sam Bankman-Fried (SBF). Before his legal troubles, SBF was a major investor in Solana, securing 2.5% of its locked supply and actively promoting it—even buying SOL on the open market to stabilize prices. SOL became known as "Sam’s coin," alongside other FTX-linked assets like FTT and SRM.
"The 11.2 million SOL from FTX’s bankruptcy auction will unlock on March 1, worth $2.06 billion." — Wu Blockchain (@WuBlockchain) February 17, 2025.
Distribution and Unlock Schedule
After tomorrow’s large unlock, two smaller releases follow:
- 12,700 SOL on April 1
- 73,700 SOL on May 1
These tokens are part of FTX’s bankruptcy assets. Solana’s total supply is allocated as:
- Community reserve: 40.8%
- Early team & investors: ~26.7%
- Founder sales & Solana Foundation: 20.8%
Most tokens were unlocked before February 2021.
Who Benefits from This Unlock?
The unlocked SOL won’t go to FTX victims but to claim buyers like Pantera Capital and Galaxy Asset Management, which purchased SOL at $64 per token. Galaxy’s Kelly Greer downplays market impact, citing their small share of total supply. However, sell pressure could rise if investors liquidate holdings.
👉 Explore Solana’s latest price trends
Price Impact on Solana
SOL has lost a third of its value this year. With $1 billion+ tokens hitting the market, investors fear increased volatility—though Galaxy hasn’t confirmed immediate sale plans. Whether this unlock fuels new investment or further price drops remains to be seen.
FAQ
Q: Will SOL’s price drop after the unlock?
A: While possible, large buyers like Galaxy may hold tokens long-term, mitigating sell pressure.
Q: How much SOL is still locked?
A: Beyond this unlock, only 86,400 SOL remain scheduled for release by May.
Q: Why did FTX sell its SOL?
A: To repay creditors during bankruptcy proceedings.
DISCLAIMER: Crypto investments carry high risks. Conduct your own research before deciding. This content is informational only.