Over 40 Million Solana (SOL) Linked to FTX Partner Alameda Research To Remain Frozen For About 10 Years
Besides LUNA, UST, and the imploded FTX exchange native token FTT, the Solana native token, SOL, is among the most underperforming crypto assets in 2022.
One of the major reasons for the steady decline in the dollar valuation of SOL could be said to be the incessant network outages, recorded this year on the popular smart contract-enabled blockchain, Solana.
Many crypto investors have lost faith in the once-hyped SOL token as evidenced by the increasing sell pressure on the crypto asset since November 2021. As a matter of fact, Solana (SOL) touched an all-time high of $260 per coin following the 2021 crypto market bull run. But at the time of writing, the 16th largest cryptocurrency has declined over 94% in the past 52 weeks and is currently trading for $13.76.
While several cryptocurrency punters and TA experts predict Solana (SOL) to maintain the downward momentum toward the $4 price zone, some development could probably lead to SOL bottoming out.
Alameda Research Staked SOL
It is worth noting that Alameda Research, a crypto firm linked to the collapsed FTX exchange was previously among the top stakers of SOL. Beyond this, Alameda Research has millions of staked Solana tokens locked in different wallets. Data show that Alameda Research holds 48,660,020 SOL in locked stake.
According to Solana Compass, a platform that tracks Solana's circulating and non-circulating supply, current inflation schedule as well as the largest holders of locked Solana stake, SOL in locked stake owned by Alameda Research represents 65.5% of all Solana tokens in locked stake.
Following the Chapter 11 bankruptcy crisis involving Alameda Research, due to the meltdown of FTX Trading Limited, in November, these 48,660,020 SOL in locked stake, are now owned/ held by liquidators and may remain frozen for more than 10 years.
In other words, the SOL tokens in question cannot be sold until FTX's bankruptcy process is completed. It is also worth noting that these amounts of SOL are not included in the circulating supply of Solana. However, the entire 48,660,020 SOL will likely be unlocked in 2025.
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