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Solana Mobile Ambassador says no cause for alarm amid fears of FTX liquidation as Solana price crashes.
In the last 24 hours, Solana (SOL) has declined 4.74%, putting its one-week performance at a more significant 10.39% crash. Notably, the bearish performance is not unique to Solana, as the overall market trades in the red.
Yet, some market participants believe SOL is headed for more significant dips, citing FTX’s impending liquidation of its SOL holdings. In particular, prominent influencer Crypto Rover tweeted that the bankrupt FTX exchange will receive approval to liquidate a trove of cryptocurrencies.
Based on the tweet, Solana occupies the largest share among the digital assets FTX would supposedly liquidate. Specifically, Rover stated FTX is expected to sell $685,000,000 SOL tokens.
FTX is expected to receive approval to liquidate the following assets on September 13th.$SOL $685,000,000$FTT $529,000,000$BTC $268,000,000$ETH $90,000,000$APT $67,000,000$DOGE $42,000,000$MATIC $39,000,000$BIT $35,000,000$TON $31,000,000$XRP $29,000,000
They had $3.4… pic.twitter.com/ydEohN23EX
— Crypto Rover (@rovercrc) September 9, 2023
SOL Going to $5?
Moreover, the influencer noted that FTX proposed to sell $200 million in cryptocurrencies weekly. The revelation sparked significant attention from the crypto community, with many issuing bearish signals.
Prominent trader ‘Bleeding Crypto’ said he feels no pity for anyone holding Solana after the revelation that FTX would dump over $600 million SOL. The trader argued it is better to sell SOL now and rebuy the digital asset within the $5 to $8 range.
In a similar conversation, a crypto enthusiast argued SOL was heading to $14 initially, but the FTX development will make it faster.
FTX Is Not Selling $685M SOL Now
In response to the bearish calls against Solana, Gumshoe, an ambassador of Solana Mobile, shared a counter-view.
The Solana ambassador argued that the FTX collapse’s aftermath was Solana’s most significant setback. He highlighted that the event saw SOL crash to $8, yet the coin has since recovered to trade above $20.
Moreover, Gumshoe provided context to the alleged massive dump of Solana tokens. He mentioned that the crypto community should be less worried about the $600 million sales as it is expected to take place over the course of five years.
The FTX collapse and consequently biggest black swan Solana ever endured put SOL at $8
And we're worried about ~$600M that will be sold over the course of the next 5 years?
Some Major L1s have higher inflation than this and no one cares.
— Gumshoe (@0xGumshoe) September 10, 2023
Additionally, Gumshoe argued that other prominent layer-one blockchains have higher inflationary factors than Solana, but ‘nobody seems to care.