Results of the Blind Auction for Solana Tokens to Be Announced on Thursday by FTX Estate

Results of the Blind Auction for Solana Tokens to Be Announced on Thursday by FTX Estate

• This week, FTX estate will put a portion of its Solana (SOL) tokens up for auction. The "blind auction method" will be used to sell the SOL tokens, giving buyers the opportunity to acquire the digital assets with pride.

Insider sources claim that an estimated quantity of Solana (SOL) tokens will be up for sale this week by the estate of the now-defunct cryptocurrency exchange, FTX. The announcement will be made on Thursday after the bidding, which will use a "blind auction" approach, ends on Wednesday.
The "blind auction method" will be used to sell the SOL tokens, giving buyers the opportunity to acquire the digital assets with pride. As a result, this auction technique protects the confidentiality of the bidders, supporting process fairness and transparency. Compared to previous fixed-price sales systems that depended on potentially lower market pricing, the auction signifies a change. Following the steep reductions in SOL prices, the sale proceeded with massive markdowns on SOL tokens, forcing the corporation to look into other liquidation options.

Strategy of Liquidation through Auctions

The CEO of Figure Markets, Mike Cagney, is in charge of the FTX bankruptcy estate, and he has chosen to auction off its locked SOL tokens. Such an approach aims to achieve better market prices than direct sales might have historically brought, and it frequently results in a sizeable refund.
Figure Markets makes access to non-US and US-accredited investors possible through the use of an SPV. These investors will ultimately aid in projects aimed at maximizing returns and will further community-led decision-making on bid prices. Through the SPV framework, interested parties can raise money with fiat currencies or cryptocurrencies, with bid prices set by a mechanism of one dollar to one vote.
Some FTX creditors have responded favorably to the auction-based sales, particularly those who felt harmed by the previous fixed-price sales. More crucially, as the move raises the likelihood of more small investors participating, Suni Kavuri, the representative of creditors, has expressed interest. The minimum investment level for the auction is $5,000, which is less than the $5 million that was previously set for direct purchases. This is done in an effort to promote inclusivity among potential purchasers and guarantee democratic participation.

Legal Rebuttals and Objections

On the other hand, FTX continues to pursue an intricate process for filing for bankruptcy, and there are still depreciations related to managing the bankruptcy estate. Suni discussed the strategies for valuation that the legal firm Sullivan & Cromwell employed to efficiently handle the proceedings. He claims that because of these methods, assets were devalued, which ultimately made it difficult for creditors to get their money back. Furthermore, these complaints are the parts of a lawsuit that creditors have been pursuing in an effort to recover damages from everyone who had any influence over the estate's management.

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The creditors fiercely objected to FTX's discounted Solana token sales, claiming that this was the reason behind the decline in the market value of the creditors' assets. Furthermore, the platform in question disclosed $1.9 billion from the purchase of SOL tokens back at a price of $64—a significant discount to their current range.