Pantera Capital to buy Solana tokens from FTX estate

Pantera Capital, a hedge fund specializing in cryptocurrencies, is in the process of raising funds from major investors to purchase Solana (SOL) tokens at a discounted rate from the estate of the now-bankrupt cryptocurrency exchange FTX. The fund, named Pantera Solana Fund, is targeting up to $250 million worth of SOL tokens, offering them at a 39% discount. Investors participating in this deal will be subject to a lock-up period of up to four years before they can sell the tokens.

The connection between Solana and Sam Bankman-Fried, the former CEO of FTX, has led to SOL tokens being colloquially known as “Sam Coins.” Bankman-Fried’s companies were reported to hold nearly $1.2 billion in SOL tokens as of June 2022. Following the collapse of FTX, Solana’s value plummeted, resulting in an $8 billion loss in market value. Despite this, the token has shown resilience, with its price rebounding to approximately $144.24 as of the last trading session.

The proposal by Pantera Capital is designed to enable FTX liquidators to offload SOL tokens gradually, thereby minimizing the impact on the market. The FTX estate currently possesses 41.1 million SOL coins, which are valued at $5.4 billion. Pantera had initially set a goal to finalize the fund by the end of February and has successfully raised some of the funds by that deadline. The recent uptick in SOL’s price, which saw a 10% increase, indicates a renewed interest in the market, with spot buyers contributing to higher trading volumes.