Pantera Capital in Quest for Funds to Acquire Solana from Bankrupt FTX Estate

CryptoNews.com

2024-03-07 21:58:10

Shalini Nagarajan

Last updated:

March 8, 2024 00:58 EST | 1 min read

Crypto asset manager Pantera Capital is seeking funding from major investors to purchase Solana (SOL) tokens at a discounted rate from the bankrupt FTX estate.

SOL was often referred to as a “Sam Coin” because of its strong connection to disgraced crypto boss Sam Bankman-Fried. He, along with his companies, made substantial investments in projects and assets linked to Solana and promoted its brand extensively before FTX’s collapse of FTX in Nov. 2022.

Pantera Capital is now seeking funding for its Pantera Solana Fund, per a Bloomberg report on Thursday. The fund has the chance to acquire up to $250m worth of SOL tokens from FTX.

Investors can buy SOL tokens at a discount of 39% below the average price of the last 30 days (or at $59.95) but must wait for up to four years before they can sell them, according to the report.

Pantera didn’t return Cryptonews’ request for comment by press time.

Bankman-Fried’s companies held nearly $1.2b worth of the token and associated assets in June 2022. “Sell me all you want,” he once told a skeptical trader in Jan. 2021. “Then go f— off.”

However, when FTX collapsed, investors quickly sold off Solana, resulting in an $8b loss. During the exchange’s downfall from Nov. 6 to 9, SOL’s price plummeted by over 60% to a low of $12.37 on Nov. 9. Nevertheless, the token has since rebounded, surging by over 680% in the past year and trading at around $144.24 as of Friday.

Pantera’s proposal effectively allows FTX liquidators to gradually sell SOL tokens, avoiding market pressure. The estate is said to hold 41.1m SOL coins, valued at $5.4b.

Pantera initially hoped to close the fund by the end of February, and has succeeded in raising some funds by that deadline.

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