Key Highlights;

• FTX creditors invited to participate in an auction for Solana tokens.
• Minimum bid set at $5,000, opening doors for smaller investors.

Yello ParadiseSquad! FTX creditors, here’s your call to action! The bankrupt crypto exchange is changing how it sells off its remaining Solana tokens. Unlike past sales directly to big firms, this time there’s an auction, and you’re invited to join in!

A More Inclusive Bidding Process

On April 20, Mike Cagney from Figure revealed plans for the new auction format, which aims to make participation more accessible compared to previous methods that favored large venture capital entities like Galaxy Digital and Pantera Capital. This change comes after criticisms over how the Solana tokens were being sold off at significant discounts.

How Can You Participate?

Sunil Kavuri, a prominent FTX creditor, highlighted the opportunity for smaller investors affected by FTX’s collapse. He announced, “This auction allows retail FTX creditors to get involved with just $5,000, a stark contrast to the hefty $5 million needed previously.”

The Details

Figure Markets will set up a special-purpose vehicle (SPV) to facilitate participation. This SPV is open to both US and non-US accredited investors, with a compulsory KYC process to ensure regulatory compliance. Participants can invest using the US Dollar, USD Coin, Bitcoin, or Ethereum. This SPV will also promote community involvement in deciding the bidding strategy and managing the investments post-auction.

The Controversy and the Opportunity

FTX’s strategy of selling off SOL tokens at discount prices previously faced backlash for allegedly undermining creditor values. Kavuri expressed discontent with past practices, stating, “It’s not right for FTX to sell our property at these discounted rates.” He also mentioned ongoing lawsuits against entities involved in these sales, seeking to reclaim losses based on current market values rather than the discounted rates previously used.

Looking Ahead

As the auction details are still unfolding, all eyes are on how this new approach might better serve the interests of FTX’s many creditors. This auction not only offers a potential recovery path for those impacted by the FTX collapse but also sets a precedent for how bankrupt crypto entities might handle asset liquidations more equitably in the future.