The defunct FTX Derivatives Exchange is set to commence another round of payments that will require fund liquidations, negatively impacting the Solana price.
Bahamian-headquartered cryptocurrency exchange FTX is preparing to commence its $5 billion payout to creditors, and the anticipation has contributed to bearish pressure in the Solana (SOL) ecosystem. In the early hours of May 16, the top coin plunged by over 4%, bringing further losses to holders.
Solana Holders Expect Selling Pressure
Considering the recent price drop, analysts and market watchers believe bearish pressure is looming for Solana. The coin totaled $169 just when FTX confirmed the creditors’ payouts. Since then, the market has made some adjustments, causing SOL to recover slightly. However, the coin is still in the red zone.
At press time, SOL traded at $171.83, a 0.5% decline within the last 24 hours. The fall to $169 marked SOL’s first loss of intraday support at $170 in May.
Although there is a general rise in bearish momentum of Layer-1 tokens, with Ethereum (ETH), XRP, and Cardano recording notable drops, StakingRewards reported that more than 1.4 million SOL have been unstaked in the past seven days.
Based on Solana’s current market value, the unstaked assets are worth approximately $240.5 million.
Most of these coins are probably part of FTX liquidations, and it is normal for such a massive movement of tokens to generate selling pressure. However, it raises more concern when the assets are directed to crypto exchanges or OTC desks.
FTX Schedule Creditors’ Payout for May 30
FTX’s plan to repay its creditors has been under consideration for quite a while. The crypto exchange imploded in 2022 and has since been trying to gather funds to complete its reorganization process. Most of the top executives, like Sam Bankman-Fried and Caroline Ellison, were forced to forfeit their assets in the lawsuit settlement.
It recently announced that the distribution of funds will commence on May 30, 2025. According to the announcement, this will apply to holders of allowed claims in the Plan’s Convenience and Non-Convenience Classes who have completed all pre-distribution requirements.
The company stated that “Eligible creditors should expect to receive funds from their selected distribution service provider (a “Distribution Service Provider”), either Bitgo or Kraken, within 1 to 3 business days from May 30, 2025.”
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