The crypto world is bracing for a significant event set to unfold this weekend: the unlock of 11.2 million Solana (SOL) tokens from the bankrupt FTX estate.
According to data from Messari, this release will increase the circulating supply of SOL by 2.2%, with a market value exceeding $1 billion. The big question on everyone’s mind: What will this mean for Solana’s price and market stability?
Why Did FTX Own So Much Solana?
For those who’ve entered the crypto space in recent years, it may seem puzzling why FTX held such a massive amount of SOL.
The answer lies in the story of Sam Bankman-Fried (SBF), the former founder of FTX. Before his legal troubles and conviction in December 2022, SBF was one of the most influential figures in crypto. He didn’t just build FTX—he was also a major backer of Solana.
Reports indicate that SBF secured 2.5% of Solana’s locked supply and aggressively promoted the ecosystem. At one point, SOL was even nicknamed the “Sam coin” alongside other assets like FTT, SRM, OXY, and MAPS. SBF reportedly bought SOL on open markets to stabilize its price during volatile periods.
“The 11.2 million SOL from the FTX bankruptcy auction will be unlocked on March 1, worth $2.06 billion,” tweeted blockchain analyst @ai_9684xtpa. “FTX sold 41 million SOL in three auctions, with top buyers including Galaxy and Pantera at prices between $64 and $102.”
This legacy continues to ripple through the market—especially as these long-locked tokens finally enter circulation.
Solana Token Distribution and Unlock Schedule
While tomorrow’s unlock is the largest single release to date, it’s not the end of the story.
Two smaller unlocks are scheduled:
- 12,700 SOL on April 1
- 73,700 SOL on May 1
These tokens are all part of FTX’s bankruptcy estate, being liquidated to repay creditors.
To better understand the broader context, here's how Solana’s total token supply is distributed:
- Community Reserve: 40.8%
- Founding Team: 13.4%
- Early Investors: 13.3%
- Founder Sales: 9.8%
- Solana Foundation: 11%
Most of these allocations were unlocked before February 2021, making the current FTX-related release an unusual and closely watched event due to its size and timing.
👉 Discover how major token unlocks affect market dynamics and investor sentiment.
Who Benefits from This Unlock?
It’s crucial to clarify: the victims of FTX’s collapse will not receive these tokens.
Instead, the rights to these unlocked SOL tokens were auctioned off to third-party investors as part of the bankruptcy proceedings. Key beneficiaries include well-known crypto investment firms:
- Pantera Capital
- Galaxy Asset Management (led by Mike Novogratz)
Galaxy, for instance, acquired claims to a large portion of these locked tokens at $64 per SOL—a significant discount compared to current market levels.
Once unlocked, these entities become the legal owners of the tokens and can choose to hold, sell, or stake them.
Kelly Greer, Managing Director at Galaxy, has stated that their holdings represent only a small fraction of Solana’s total supply, suggesting minimal market impact. However, the real concern lies in market perception—if large holders begin selling even part of their stash, it could trigger short-term volatility.
Potential Market Impact on Solana’s Price
As of early March 2025, Solana (SOL/USDT) has already declined by about one-third year-to-date.
The release of over $1 billion worth of new supply adds another layer of uncertainty. While Galaxy hasn’t confirmed any immediate sell plans, the mere possibility creates jitters among retail and institutional investors alike.
Historically, large token unlocks can lead to:
- Increased selling pressure
- Short-term price dips
- Heightened trading volume and volatility
However, if major buyers like Galaxy choose to hold or re-stake their SOL, the impact could be neutral—or even positive—as confidence returns to the network.
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Could This Be a Buying Opportunity?
Some analysts view this unlock as a classic “buy the rumor, sell the news” scenario. If the price dips post-unlock due to panic selling or algorithmic trading triggers, it might present a strategic entry point for long-term investors.
After all, Solana’s fundamentals remain strong:
- High transaction throughput
- Low fees
- Growing DeFi and NFT ecosystems
- Strong developer activity
Short-term noise shouldn’t overshadow long-term potential—for those who understand market cycles.
Frequently Asked Questions (FAQ)
🔹 Will the 11.2 million SOL unlock cause a price crash?
Not necessarily. While large unlocks can create downward pressure, actual impact depends on what the new holders do. If they hold or gradually sell, the market can absorb the supply without a crash.
🔹 Who owns the unlocked Solana tokens now?
The tokens are owned by entities like Pantera Capital and Galaxy Asset Management, which purchased claims during FTX’s bankruptcy auctions.
🔹 Is this bad for Solana’s ecosystem?
Not inherently. The unlock itself doesn’t affect network performance or utility. However, negative sentiment or coordinated selling could temporarily impact investor confidence.
🔹 How often do large token unlocks happen?
They’re relatively rare for established projects like Solana. Most early unlocks occurred years ago. This event stands out due to its link to FTX and sheer size.
🔹 Should I sell my SOL before the unlock?
That depends on your investment strategy. Panic selling based on speculation often leads to poor outcomes. Consider your time horizon and risk tolerance before making moves.
🔹 Can buying pressure offset the unlock?
Yes—especially if institutional or retail demand increases at the same time. Market dynamics are influenced by both supply and demand forces.
👉 Monitor real-time price movements and unlock impacts with advanced trading tools.
Final Thoughts: A Test of Market Maturity
The upcoming Solana unlock is more than just a supply shock—it’s a test of how mature the crypto market has become.
Five years ago, an event like this might have triggered a full-blown panic. Today, with better information flow, diversified ownership, and stronger infrastructure, markets are better equipped to handle such transitions.
While caution is warranted, fear shouldn’t drive decisions. Understanding tokenomics, market psychology, and holder behavior gives investors a clearer edge.
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As always, stay informed, stay strategic—and watch how this chapter in Solana’s story unfolds.