Traders Dump Solana amid FTX Repayment

Olumide Adesina•Tuesday, February 18, 2025•1 min read

Solana posted significant losses, in the aftermath of reports that FTX will start returning tokens to creditors from its 2022 collapse, beginning with those who owned $50,000 or less.

Investor reactions to the report were not uniform; some believed such was negative for the cryptocurrency market.

Solana

The now-defunct cryptocurrency exchange FTX is set to start its first round of creditor reimbursements after collapsing in late 2022. As part of FTX’s ongoing bankruptcy deal, the exchange will begin making payments to its creditors this week. The official refund process is scheduled for Tuesday

FTX’s restructuring proposal states that Convenience Class creditors with claims under $50,000 will benefit first.

In addition to the entire repayment, they will receive 9% yearly interest after the petition.

There is still disagreement, however, some people think cash inflow could raise market values.

Markus Thielen, the head of 10x Research, stated in a client note made public on Monday that “FTX will allocate roughly $1.2 billion to Convenience Class creditors […] too tiny to move the market

The March 1 unlock event for Solana (SOL) is quickly approaching, releasing 112 million tokens valued at roughly $207 billion.

Notably, this represents a significant cliff unlock, or 2:29 percent of the supply. Traders expect more volatility through mid-March as the cryptocurrency market responds to this development. Technical indicators, meanwhile, point to a bearish outlook, supporting the ambiguity surrounding SOL’s price movement.

Check out our free forex signals

Follow the top economic events on FX Leaders economic calendar

Trade better, discover more Forex Trading Strategies

ABOUT THE AUTHOR See More

Olumide Adesina

Financial Market Writer

Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.