On April 20, Figure CEO Mike Cagney revealed that the next round of FTX’s locked Solana token sales would be via auction, compared to previous ones sold directly to venture capital firms like Galaxy Digital and Pantera Capital.
Consequently, Sunil Kavuri, a prominent FTX creditor, urged retail investors impacted by the collapse of the exchange to participate in the process. He said:
“[Figure] created a structure to allow retail FTX creditors to participate with a minimum investment of $5000 vs. the $5 million required to purchase from FTX.”
Figure Markets will create a special-purpose vehicle (SPV) to compete in the auction. The SPV will be available to accredited US and non-US investors who must pass a compulsory KYC process.
The SPV would engage in community consensus to decide on bid prices and subsequent investment management. It would accept investments in the US Dollar, USD Coin stablecoin, Bitcoin, and Ethereum.
Meanwhile, the defunct exchange has yet to provide additional information about the auction process as of press time.
The SOL tokens constitute a significant portion of FTX’s crypto holdings, and the exchange has been actively divesting them at discounted rates. The failed exchange recently realized $1.9 billion by selling SOL at $64 per token, well below its current market value.
These discounted sales have attracted significant criticisms from FTX creditors, who argued that the sales have destroyed values for them. Kavuri said:
“It’s not right for FTX to sell our property. Any value Sullivan & Cromwell and co-conspirators have destroyed for FTX creditors, they are being sued for through our class actions. This value is at current prices not their BS petition date pricing lies.”
