Pantera Capital, a prominent crypto-focused asset manager, is making headlines with its plans to raise $250 million for the purchase of discounted Solana (SOL) tokens. The tokens will be acquired from the bankrupt estate of crypto exchange FTX. The initiative, known as the Pantera Solana Fund, offers investors the opportunity to buy SOL tokens at a significant discount to the FTX estate.
Pantera Capital’s marketing materials, shared with prospective investors, outline the opportunity to purchase SOL tokens at a price 39% below the 30-day average or at a fixed price of $59.95. However, investors who participate must agree to a vesting period of up to four years. This gradual offloading of SOL tokens allows the FTX liquidators to free up funds for creditors without exerting immediate downward pressure on the token’s price.
According to Pantera’s pitch document, the FTX estate currently holds approximately 41.1 million SOL tokens, valued at $5.4 billion. This constitutes roughly 10% of the total supply of SOL tokens. Pantera aimed to close the fund by the end of February, and while the amount raised remains undisclosed, sources confirm that Pantera has secured some funds.
Investors interested in participating in the Pantera Solana Fund must commit a minimum of $25 million. Pantera Capital plans to charge a management fee of 0.75% and a performance cut of 10%. The purchase of these discounted tokens presents an opportunity to raise funds to repay creditors, considering SOL’s notable price surge in the past year. SOL has experienced a staggering 650% increase, trading nearly four times its price during FTX’s crisis in November 2022.
In addition to its SOL token holdings, FTX and its sister firm, Alameda Research, have invested significantly in startups within Solana’s ecosystem. FTX’s venture arm, Solana Ventures, and Lightspeed Venture Partners announced a $100 million blockchain gaming fund in November 2021.
Amidst these developments, crypto analyst Altcoin Sherpa predicts that SOL will shatter its previous all-time high (ATH) of $259. SOL is currently trading at $147, and Altcoin Sherpa believes that reaching $500 is highly probable, with an even more astonishing milestone of $1000 not entirely out of the question. The analyst emphasizes SOL’s potential and highlights $170 as the next significant level to watch for the token.
As SOL’s price continues to rise, it remains an asset of interest for investors and analysts alike. Whether it achieves the anticipated milestones or encounters fluctuations along the way, the crypto community will be closely monitoring SOL’s journey.