FTX’s new management is starting to monetize the large cryptocurrency portfolio held by the crypto exchange. According to the latest on-chain data, FTX has placed the equivalent of over $120 million worth of Solana (SOL) tokens in staking with a remunerative rate up to 7%.
FTX starts staking Solana (SOL) tokens
The teams in charge of restructuring FTX, the cryptocurrency exchange filed for Chapter 11 bankruptcy protection in the United States last November, are starting to monetize the company’s crypto portfolio.
Indeed, yesterday, Saturday October 14, an address associated with FTX deposited over 5.5 million SOL tokens in staking, representing over $121 million.
– ashpool (@solanobahn) October 14, 2023
Some 5.5 million SOL tokens have been staked with Figment, a validator dedicated to institutional investors. At the time of writing, Figment is offering 7% returns on SOL, with rewards paid out at each epoch in auto-compound.
Solana’s operation is based on a combination of Proof of History and Proof of Stake, so staking SOL tokens helps the blockchain run smoothly. To find out more about Solana’s infrastructure, please read our dedicated fact sheet.
Last September, FTX obtained authorization to liquidate $3.4 billion of cryptocurrencies held in its portfolio in order to participate in the reimbursement of aggrieved investors. However, in order to contain the fallout on the market, FTX will only be able to sell $100-200 million of its cryptocurrencies per week.
Still with a view to refunding as many customers as possible, FTX management has also taken steps to leverage the tools of decentralized finance (DeFi) to generate profits, notably with staking.
Sam Bankman-Fried had shown a particular interest in the Solana ecosystem, even investing in the Solana Foundation with FTX. As a result, the exchange is now automatically receiving 645,000 new tokens per month, in line with the vesting period initially planned. The vesting period will end on March 1, 2025, when Solana will receive 7.5 million SOL tokens in one go.
Former FTX CEO Sam Bankman-Fried is currently undergoing his first trial on multiple fraud charges. We invite you to follow our live coverage of the Sam Bankman-Fried trial to make sure you don’t miss any twists and turns in this major case