FTX Creditors To Bid On Remaining Solana Tokens Through Auction

By: Isha Das

With the plan to conduct an auction for the remaining Solana token holdings of the now-defunct exchange, FTX, creditors have been urged to participate. Mike Cagney, Figure CEO, unveiled the new auction avenue on 20th April, contrasting the direct sale approach used earlier.

The intention behind this process is to allow retail creditors affected by the exchange's meltdown, to participate in the bidding process. Sunil Kavuri, a notable FTX creditor, highlighted that this structure necessitates a minimum investment of $5,000, which is a fraction of the earlier required investment of $5 million for purchasing directly from FTX.

Figure Markets plans to establish a special-purpose vehicle (SPV) for participating in the auction. The SPV - accepting investments in Bitcoin, Ethereum, USD Coin stablecoin, and the US Dollar - will be open to accredited investors, both US and non-US, upon clearing a compulsory KYC process. The SPV aims to involve the community in determining investment management and bid prices.

Despite this, FTX has yet to shed more light on the auction process as of now. SOL tokens form a considerable segment of FTX's crypto holdings, and the exchange has been strategically divesting them at discounted rates, attracting criticism from creditors who claim the discounted sales erase their values.