Is A Solana Crash Imminent?

While SOL, the native token of the Solana network, recovered from a gargantuan crash stemming from its entanglement with the now-defunct crypto exchange FTX

Solana (SOL) has shown remarkable resilience amidst the crypto market downturn, largely shrugging off the الكبير massive sell-off triggered by the FTX and BlockFi exchange crashes.

However, a fresh concern has emerged that could potentially impact SOL’s market performance in the coming weeks. According to a recent report, a former employee of FTX has disclosed that the failed exchange still holds a significant portion of Solana tokens. This revelation has raised questions about the possible implications for SOL’s price if FTX decides to offload these tokens.

Solana Price May Face Selling Pressure if FTX Offloads Tokens

In a surprising development, a crypto influencer known as Wise Advice recently revealed that an ex-FTX employee has come forward as a whistleblower. The whistleblower has reportedly disclosed that FTX still holds a substantial amount of Solana (SOL) tokens, which equates to roughly 8% of the coin’s total supply.

According to the whistleblower’s claims, FTX and its sister company Alameda are stashing the Solana tokens away in previously undisclosed crypto wallets. This hidden SOL hoard could have a major impact on the market, especially if the tokens are dumped en masse, potentially exerting significant selling pressure on SOL’s price.

Moreover, this revelation sheds light on the murky financial practices that were occurring within FTX, ultimately contributing to the exchange’s spectacular collapse. While the whistleblower’s claims are yet to be independently verified, they certainly raise eyebrows.

According to Wise Advice, FTX will likely sell these tokens via over-the-counter (OTC) deals rather than dumping them on the open market. However, he anticipates that some selling pressure could hit the market soon if the SOL tokens are dumped en masse.

Solana fundamentals: ETF approval pending, meme coin trading activity

There are high expectations that the U.S. Securities and Exchange Commission (SEC) will approve SOL exchange-traded products (ETFs) in the near future, following the regulatory body’s approval of Ether (ETH) instruments on July 22. The SEC has set the final deadline for the SOL ETF ruling in March 2025.

Solana (SOL) has gained immense popularity among investors due to its lightning-fast settlement speeds and incredibly low fees. These attributes have served as the foundation for several meme coin trading frenzies throughout the past year.

After initially claiming that Solana is a security, the SEC has backed down from that stance, further enhancing SOL’s appeal among professional investors. However, the investment community appears to be divided over the prospects of a spot Solana ETF.

At the Bitcoin 2024 conference in Nashville, BlackRock’s head of digital assets stated that “there is very little interest today” among their clients in anything beyond Bitcoin (BTC) and Ether (ETH).

In contrast, investment manager Franklin Templeton presents a very optimistic outlook for a spot SOL ETF, citing surging adoption and successful overcoming of “technological growing pains.”

Moreover, the Cboe exchange has already submitted a pair of 19b-4 filings with the SEC, requesting permission to list VanEck’s and 21Shares’ potential spot SOL investment vehicles, which were initially filed in late June.