The bankrupt cryptocurrency exchange has staked close to 0 million in several crypto assets, including Solana, Ethereum, and MATIC. Blockchain data revealed that the defunct platform has staked over 5.5 million SOL and more than 24K ETH. FTX Move to Staking Staking is primarily the practice of locking up cryptocurrencies on a blockchain network to support it and earning token rewards, mainly at a predetermined rate. #CryptoNews: Over 5.5 million #Solana (SOL) were sent by an #FTX-identified wallet to #Figment, a staking validator service catering to institutional investors. 👀https://t.co/gSXPVBeGwz — CoinMarketCap (@CoinMarketCap) October 16, 2023 According to blockchain data, FTX has staked approximately 5.5 million SOL, valued at around 2 million, into the Figmen
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The bankrupt cryptocurrency exchange has staked close to $170 million in several crypto assets, including Solana, Ethereum, and MATIC.
Blockchain data revealed that the defunct platform has staked over 5.5 million SOL and more than 24K ETH.
FTX Move to Staking
Staking is primarily the practice of locking up cryptocurrencies on a blockchain network to support it and earning token rewards, mainly at a predetermined rate.
#CryptoNews: Over 5.5 million #Solana (SOL) were sent by an #FTX-identified wallet to #Figment, a staking validator service catering to institutional investors. 👀https://t.co/gSXPVBeGwz
— CoinMarketCap (@CoinMarketCap) October 16, 2023
According to blockchain data, FTX has staked approximately 5.5 million SOL, valued at around $122 million, into the Figmen network. This strategic move is anticipated to yield significant returns, with an estimated annual yield of 6.79%, potentially resulting in compounded tokens worth $8 million over time.
In terms of the 24K ETH tokens, valued at $37.4 million, FTX has directly staked these assets onto the Ethereum network based on transaction details. As of now, the estimated return stands at 3.4%, equivalent to $1 million worth of Ethereum.
In addition to SOL and Ethereum, reports indicate that FTX has also staked MATIC, the native token of Polygon. Approximately $9.5 million worth of MATIC has been staked. However, current data analytics suggest that only around 13.5 million MATIC, valued at approximately $6.8 million, has been staked so far, with a capped return of 4.6%.
The analysis of the tokens reveals that the amounts were primarily held in addresses controlled by FTX’s sister company, Alameda Research.
The relationship between Solana and FTX dates back to the pre-bankruptcy era, during which the exchange held approximately $1.16 billion worth of SOL tokens at one point.
Court Battles Continue
The recent staking activities by FTX are a result of a recent ruling where the U.S. Bankruptcy Court for the District of Delaware granted the exchange permission to invest and hedge its crypto holdings worth $3.4 billion.
As per reports, the holdings included $685 million in Solana tokens, $529 million in FTT, $268 million in Bitcoin, and $90 million in ETH. The exchange also held some amounts in Polygon, Aptos, XRP, Dogecoin, and certain stablecoins.
Another legal battle involving FTX continues, this time being that of the failed exchange’s former head, Sam Bankman Fried. The ex-CEO is charged with fraud and misappropriation of billions in customers’ funds.
In fact, in the recent proceedings, FTX’s ex-lead engineer, Nishad Singh, highlighted some significant questionable money and investment decisions made by FTX under the leadership of SBF.