The reported “liquidation” of Solana (SOL) coins by FTX has been the talk of the crypto world. To be clear, though, this is not a fire sale nor an indication that Solana is about to crash.
First off, Alameda owns the wallet in question, which contains a startling 26,740,743 staked SOL that is locked until 2025–2028. Not these SOL tokens but the wallet’s keys are available for grabs in the FTX liquidation. When the time comes, only the future key holder will be able to unstake these tokens.
You might be curious in the seven million SOL and Wrapped SOL (WSOL) that FTX/Alameda is said to own at this point. Well, the Solana Foundation has already purchased those in advance. Do not assume anything when you hear about transfers taking place later this week. The seven million SOL are already reserved, while the remaining 26 million SOL are locked.
The price range for Solana during the previous month can be shown to range from $19.76 to $24.69. Despite minor price swings, there hasn’t been a sharp rise or fall that would portend approaching calamity. Despite the rumours, the market appears to be handling Solana with some steadiness.
What should you learn from this? Simple. The word “liquidation” should not mislead you. SOL tokens are not being dumped in bulk by FTX. Up to 2025–2028, the locked SOL tokens won’t move; instead, just the keys to the treasure will be traded.
It’s critical to distinguish the wheat from the chaff in a market where speculation is the lifeblood. The misunderstanding that Solana is in peril as a result of FTX’s activities is now the chaff. The truth? This “liquidation” is more of a key swap than a token dump, and Solana is maintaining its position.
