Product

Learn

Company

AKTIO coin

Solana Blockchain Hit by FTX Tremors as Nearly $800M SOL Tokens Set to Be Unstaked

MARKET_WATCH Blockchain

The scheduled-to-be-unlocked SOL tokens represent approximately 15% of its circulating supply.

 

The epic comedown of Sam Bankman-Fried’s FTX crypto exchange and Alameda Research trading firm are making waves in the market for the Solana blockchain’s SOL token – to the point where some investors have apparently become so nervous that they’re demanding back tokens they had “staked” or deposited into the blockchain’s underlying security protocol.

Earlier this week, when concerns started to grow over the state of the two businesses’ finances, crypto market analysts began to speculate that Alameda might need to sell some of its SOL tokens to raise liquidity. The fears sent the SOL price tumbling – as traders rushed to get ahead of the selling pressure.

Now, apparently, the dynamic has risen to another level: Solana validators who provide security to the blockchain are set to unlock nearly $800 million worth of their SOL holdings as the end of the token lock-in period known as “Epoch 370” approaches – in fewer than 13 hours.

 

And analysts are speculating whether investors might dump these soon-to-unlocked SOL tokens as soon as they recover them. SOL's price recently plunged 42% to less than $14 in the past 24 hours.

“A reduction in the amount of SOL staked might indicate that investors are looking to sell all or part of their position,” Sean Farrell, head of digital asset strategy at research firm FundStrat wrote in a note on Tuesday evening following the bailout news. “Due to these factors, we think it is wise to reduce exposure to Solana (SOL) in the immediate term.”

Solana Compass’ blockchain data showed that about 55 million SOL tokens, worth around $776 million, are scheduled to unlock.

There’s about 76% of eligible SOL tokens currently being staked on the blockchain. The scheduled unlocked tokens represent around 15% of the token’s circulating supply in a single unlock.

Read More: Staked SOL Tokens Falter as Solana Traders, Stakers Rush for Exits

Riyad Carey, research analyst at crypto data firm Kaiko, told CoinDesk Monday that SOL is Alameda's second-largest holding, and it also holds significant amounts of SOL ecosystem tokens like MAPS and OXY. MAPS was recently down 20% to $0.1, while OXY was down 14% to $0.03, according to CoinGecko.

 

Source : news.google.com/__i/rss/rd/articles/CBMifmh0dHBzOi8vd3d3LmNvaW5kZXNrLmNvbS9tYXJrZXRzLzIwMjIvMTEvMDkvc29sYW5hLWJsb2NrY2hhaW4taGl0LWJ5LWZ0eC10cmVtb3JzLWFzLW5lYXJseS04MDBtLXNvbC10b2tlbnMtc2V0LXRvLWJlLXVuc3Rha2VkL9IBAA?oc=5 undefined - November 10, 2022

Join our 60k+
tribe of Akters

Have any questions?

Check our Q&A

About the AKTIO coin

Benefit fully from our ecosystem

What’s new in the App?

We’re adding new features

Customer support

support@akt.io

+353 1 574 7382

Opening hours:

Monday to Friday: 9am - 5pm CET

Company

About

AKTIO coin

Careers

Learn

News

Glossary

AKT Academy

Help

FAQ

Sitemap

System Status

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata ICO Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata Pay Ltd, Reg number 12208424 and incorporated in the United Kingdom is the registered agent of Modulr FS Limited, a company registered in England with company number 09897919, authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution (Firm Reference Number: 900573). Traditional currency will be safeguarded by a licensed bank in segregated accounts in accordance with regulatory requirements.

Automata Pay Europe Limited, Reg number 69028 and incorporated in Ireland is the registered agent of Modulr FS Europe Limited, a company registered in Ireland with company number 638002, authorised and regulated by the Central Bank of Ireland as an Electronic Money Institution (Institution Code C191242). Traditional currency is safeguarded as e-money in accordance with our regulatory obligations. Traditional currency will be safeguarded by a licensed bank in segregated accounts in accordance with regulatory requirements.

Automata ICO Limited, Reg number 690280 and incorporated in Ireland has applied for a Virtual Asset Service Provider registration with the Central Bank of Ireland. Whilst the application is ongoing we are permitted to continue business as a Virtual Asset Service Provider in line with the Central Bank of Ireland's regulatory disclosure statement as required under section 106L of the CJA 2010 in relation to registered VASPS. It is important to note that a registration as a VASP is a registration for Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (CFT) purposes only. While Automata ICO Limited does have certain financial crime control obligations under this registration, cryptoasset services remain largely unregulated. The Financial Ombudsman Service or the Financial Services Compensation Scheme do not apply to the cryptoasset activities carried on by Automata ICO Limited.