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New Troubling Fact About Solana Revealed, but How Will It Affect SOL Price?

Sun, 11/27/2022 - 13:22
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Gamza Khanzadaev
With infamous Alameda Research still holding tens of millions of SOL, we look at how this could affect price of Solana token
New Troubling Fact About Solana Revealed, but How Will It Affect SOL Price?
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According to Solana Compass, 48.6 million SOL are still in possession of the infamous crypto trading firm Alameda Research, through which FTX management manipulated and profited from the market using user funds. It was previously reported by U.Today that Alameda holds $1.2 billion in Solana on its balance sheet; since then, the SOL price has fallen by 60%.

The figure of 48.6 million SOL is not the final known size of the position of the defunct trading firm. Nevertheless, it alone represents 65.1% of all SOL blocked in staking. Moreover, in monetary terms, that volume is now $700 million and represents 8.75% of Solana's total token supply.

"Ethereum Killer" Solana's Top Spot Threatened by FTX Drama and Emergence of Strong Opponent

Under pressure

According to the portal itself, the probability that Alameda's Solana tokens blocked in staking will be released in the near future is small. This assumption is justified by the fact that FTX and affiliated structures are in bankruptcy and a liquidation process, and such cases can last up to 10 years.

The story resembles the case with Mt. Gox's Bitcoin, but there we were talking about 140,000 BTC or 0.66% of the total supply of the cryptocurrency. Here, however, a possible "black swan" of the size of 8.75% of the total supply hangs over the SOL price, and it does not seem that the pressure will let up anytime soon.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.