Unveiling an interesting development in the blockchain realm, the trustees of the now-insolvent FTX exchange are in the process of supervising its bankruptcy proceedings. The trustees have pledged a substantial 5.5 million Solana (SOL) for staking purposes. The current market value of FTX's total Solana holdings is an impressive $1.16 billion. It's noteworthy to mention that a sizeable portion of these assets will remain in a lock-up period, with full release slated for 2028.
Massive SOL Transfer Detected by Whale Alert
On October 13, Whale Alert reported a transfer of 5.5 million SOL. Following this disclosure, onchain investigator Ashpool determined that the substantial quantity of SOL belonged to the FTX estate. Ashpool further noted that the funds were allocated to the validator Figment for staking purposes.
The Potential Rewards of SOL Staking
The benefits of SOL staking can differ. Some claim that SOL staking has traditionally provided around 5.5% APY. However, others propose that SOL staking could yield up to 14.47% APY, dependent on the chosen staking platform. Rewards for staking in Solana are distributed approximately every 2-3 days, although the exact frequency of rewards can alter based on network circumstances and other factors.
FTX's Estate and its SOL Holdings
FTX's estate holds approximately $1.16 billion in SOL, but not all of it is instantly available. 12 million of FTX's SOL holdings are planned to be released in increments every 30 days until 2027. An additional 34.52 million SOL is anticipated to be gradually unlocked every month until 2028. Both of these holdings are disbursing monthly SOL that FTX has the choice to sell or stake. Interestingly, FTX retains the option to sell the keys to the entire vested holding before its formal release.
Discussion on FTX Estate's SOL Staking
What are your views about the FTX estate staking 5.5 million SOL? We'd love to hear your insights and viewpoints on this topic. Feel free to share your thoughts below.
Frequently Asked Questions
Can I buy gold with my self-directed IRA?
You can purchase gold with your self-directed IRA, but you must first open an account at a brokerage firm like TD Ameritrade. Transfer funds from an existing retirement account are also possible.
The IRS allows individuals to contribute as high as $5,500 ($6,500 if they are married and jointly) to a traditional IRA. Individuals can contribute up to $1,000 annually ($2,000 if married and filing jointly) directly to a Roth IRA.
You should consider buying physical gold bullion if you decide to invest in it. Futures contracts can be described as financial instruments that are determined by the gold price. These contracts allow you to speculate on future gold prices without actually owning it. You can only hold physical bullion, which is real silver and gold bars.
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If you are looking for a way to save money, gold is a great investment. You can also diversify your portfolio by investing in gold. There's more to gold that meets the eye.
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- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Fraud Advisory: Precious Metals Fraud
By: Jamie Redman
Title: Unveiling FTX Trustees' Hefty SOL Stake Amid Bankruptcy Proceedings
Sourced From: news.bitcoin.com/ftx-estate-stakes-5-5-million-sol-millions-locked-until-2028/
Published Date: Sat, 14 Oct 2023 15:30:18 +0000