- SBF has taken the stand to reveal he bought SOL at a very low price.
- The former CEO of FTX shared that he acquired SOL using Alameda funds.
- With FTX and SBF collectively holding more than 20% of Solana’s total market capitalization, concerns about potential sell pressure grow.
Sam Bankman-Fried (SBF), the disgraced founder of the now-defunct crypto exchange FTX, is once again in the spotlight, this time by contributing to the dossier of allegations against him with new and shocking revelations. Bankman-Fried, who openly admitted his limited trading knowledge, revealed that he acquired Solana, one of the best-performing tokens at press time, for an astonishingly low price.
The revelation left the crypto community, particularly Solana investors, in awe as they swiftly calculated the substantial percentage gains in disbelief.
SBF’s Solana Bags Come Into Light
During his testimony on October 27, SBF unveiled new information that raised eyebrows. The former crypto poster boy revealed using Alameda Research funds to buy Solana at just $0.20 apiece. Although SBF clarified that the funds originated from the trading firm’s profits rather than customer deposits, the authenticity of his statement is contradicted by previous claims made by former FTX and Alameda executives.
Earlier in the trial, Former Alameda Research CEO Caroline Ellison, Ex-FTX Co-lead Engineer Nishad Singh, and Ex-FTX Co-founder Gary Wang testified to using FTX customer funds to settle Alameda loans.
In a separate development, a Wall Street Journal article exposed an alarming security flaw in the FTX’s code, allowing Alameda Research to execute unlimited withdrawals of customer funds and maintain a line of credit of up to $65 billion.
While it is unclear how much SOL SBF acquired at $0.20, it’s important to note that Solana made up 27% of FTX’s $500M token investment, according to the exchange’s Chapter 11 filing. Additionally, FTX disclosed holding SOL tokens worth $1.16 billion when it was at $20.83. At the time of writing, FTX’s Solana holdings are worth $1.8 billion.
With Solana performing exceptionally well in the final quarter of the year, FTX and SBF have seen substantial gains, especially now that Solana is trading at $31. Adding an intriguing twist are predictions from prominent multi-billion dollar asset managers, foreseeing a 10,000% gain by 2030. If their forecasts hold true, FTX’s Solana holdings could soar to a staggering $178 billion by the end of the decade, according to VanEck’s projections.
On the Flipside
- Solana’s co-founder Anatoly Yakovenko suggested that FTX’s SOL holdings should be distributed among FTX customers in a direct way rather than by legal procedures.
- At press time, Solana’s year-to-date growth stood at 200%.
- FTX debtors estimate that its customer would receive over 90% of distributable value worldwide if the Bankruptcy Court approves its plan.
Why This Matters
FTX’s substantial holdings can significantly impact the price of SOL. The exchange recently received approval to sell its holdings, representing 20% of Solana’s total market capitalization. While the exchange is permitted to sell the tokens in batches, it may still exert substantial selling pressure. When combined with Solana’s price performance, FTX and SBF’s decision to sell could introduce market fluctuations.
Find out why this American hedge fund thinks Solana will pump 10,000%:
Solana’s 2030 Vision: VanEck Predicts SOL to Fly Past $3,200
Follow up on more market news:
Cardano (ADA) Inches Closer to $0.3 After 3-Month Slump
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