A leading cryptocurrency firm Alameda Research’s 8.2 percent locked stake in Solana is facing bankruptcy. According to experts, this has the potential to affect the altcoin price. Meanwhile, the Solana Foundation has responded to the SEC’s ‘securities’ allegations.
This altcoin asset from Alameda Research is at risk of bankruptcy
Data collected by Delphi Digital reveals that Alameda Research holds approximately $45 million in SOL. However, the firm’s assets will not be accessible until at least mid-2025. The fate of such an important stake in Solana remains uncertain. That’s why this case has caught the attention of the crypto community. Alameda Research’s locked stock represents a significant portion of the total SOL supply. It also potentially affects the market dynamics of the token in the coming years.
Alameda Research has a locked stake of 8.2% of the @solana supply.
This 45M $SOL is now in bankruptcy proceedings and has an average unlock of mid-2025. pic.twitter.com/0KfNdqDXOx
— Delphi Digital (@Delphi_Digital) June 9, 2023
What does this development mean for altcoin?
The information shared by Delphi Digital highlights an additional concern for the Solana ecosystem. Over the past few months, an account has been gradually liquidating SOL using the Time Weighted Average Price (TWAP) method. Probably owned by one of the early investors, this account has already sold around 7 million SOLs. About 10 million SOLs remained from this sale.
The continued sales of this account created sudden selling pressure in the SOL market. Thus, it exacerbated the potential consequences of Alameda Research’s bankruptcy proceedings. It is not yet clear how this supply increase in the market will affect the altcoin price and investor sentiment in the short term. The Solana community and its stakeholders are showing great interest in how the remaining 10 million SOLs will be sold. So they’ll likely be watching the situation closely. Market participants will watch for potential fluctuations in the price of SOL as this important supply enters the market.
It is not yet clear how these latest developments will affect Alameda Research and its position in the cryptocurrency space. The locked stock and subsequent bankruptcy proceedings are a reminder of the risks and challenges faced by investors and industry participants in the ever-evolving world of digital assets.
The Solana Foundation denies the SEC’s allegations
The Solana Foundation has denied the U.S. Securities and Exchange Commission’s (SEC) claims that SOL is an unregistered security. cryptocoin.com Earlier this week, the SEC filed a lawsuit against crypto exchanges Binance.US and Coinbase. He accused these exchanges of trading crypto-asset securities, including SOL. In a recent statement, the Solana Foundation opposed the SEC’s SOL classification. He also stated that this is a native token of Solana Blockchain, a decentralized software project, and not a security. In this context, he made the following statement:
SOL is the native token of Solana Blockchain, a robust, open-source, community-based software project that relies on decentralized user and developer participation to expand and evolve.
During a panel titled “What’s going on with WTF crypto policy” at the Solana NYC Hacker House event, Amira Valliani, the foundation’s head of policy, disputed the SEC’s claims. “SOL is not a security,” Valliani put it bluntly. According to the foundation, they welcome the continued involvement of policymakers as regulatory partners to provide legal clarity for thousands of entrepreneurs in the digital assets space.
Moreover, the Solana community does not seem overly concerned with Blockchain’s regulatory woes. One developer said, “I don’t think any of the developers care. “The fact that SOL is a security doesn’t really affect those who are building on Solana,” he said. On the other hand, SOL’s price fell short after the SEC’s legal proceedings. However, it has been trying to recover ever since.
