FTX, a popular cryptocurrency exchange, will be holding an auction for the remaining locked Solana (SOL) tokens from their estate. This decision comes after the success of their previous sale, which garnered a lot of interest from buyers.
Mike Cagney, CEO of Figure Markets and board chair of Figure, has confirmed that his company will be participating in the auction. Figure Markets has also introduced a Special Purpose Vehicle (SPV) for non-US and accredited US investors to facilitate their participation.
The SPV will operate based on community consensus, allowing each dollar invested to equal one vote in determining bid prices and management decisions. Investors can use USD, USDC, BTC, or ETH to participate, and Figure Markets will charge a 50 bps annual management fee.
Figure Markets plans to integrate the SPV into their exchange in the future, allowing investors to use their investment as collateral for borrowing and margining.
This investment opportunity aims to provide a streamlined way for investors to participate in the auction of locked Solana tokens from the FTX estate. With the community-driven approach of the SPV structure, investors can have a say in bid prices and management decisions.
The success of FTX’s previous SOL token sale to industry giants like Pantera and Galaxy Digital cannot be understated. With approximately $2.6 billion generated from selling two-thirds of its locked Solana tokens, the FTX estate made significant gains.
However, the volatile nature of cryptocurrencies requires careful consideration and risk management. The unlocking of a large number of tokens could create a surplus in supply, potentially causing the token price to plummet.
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