Pantera Capital, the illustrious asset management firm with a specialized focus on cryptocurrencies, has strategically embarked on a fundraising mission to procure Solana (SOL) tokens at a remarkable discount from the insolvent conglomerate of the cryptocurrency exchange FTX. In what they are branding as the Pantera Solana Fund, the company presents investors with an enticing proposition: the chance to acquire a share of up to $250 million worth of SOL tokens, an offer placed notably below market value.
It was through the discerning eyes of Bloomberg that such information came to light, revealing Pantera Capital’s comprehensive marketing strategies. Documents laid bare for investor perusal in February suggested an advantageous purchase of SOL tokens—trading at a substantial 39% less than their 30-day average or fixed at an appealing price of $59.95 each.
Nevertheless, the potential gains come tethered with a commitment—investors are required to adhere to a vesting schedule extending to four years. This strategic move is designed to align with the meticulous liquidation plans of FTX, carefully orchestrated by John J. Ray III, aiming to incrementally release SOL tokens while safeguarding necessary capital for the benefit of creditors, thereby avoiding a sudden devaluation of SOL market price.
An examination of Pantera’s solicitation literature reveals that FTX’s portfolio boasts ownership of close to 41.1 million SOL tokens, which, as of the latest closing bell on Wednesday’s trading activities, encompasses a monetary equivalent of $5.4 billion. Intriguingly, this figure represents a substantial 10% of the entire supply of SOL tokens in circulation.
In its overture to investors, Pantera had set an intents-driven timeline, aiming to finalize its fund proceedings by the end of February. Although the sum accrued as of the targeted date remains undisclosed, sources in the know relayed to Bloomberg that Pantera has successfully commenced its funding spree.
Potential contributors to the Pantera Solana Fund are encountering a minimum financial threshold for involvement set at $25 million. On a further note, Pantera Capital has disclosed a modest management fee of 0.75% supplemented by a 10% performance fee.
In a broader context, beyond Pantera’s immediate interests, FTX, alongside its affiliate Alameda Research, is deeply entrenched in the Solana ecosystem through substantial investments in a plethora of startups.
Historically, last year’s narrative unfurled the tale of a collaborative effort between FTX’s venture arm, Solana Ventures, and Lightspeed Venture Partners, heralding a $100 million blockchain gaming fund in November 2021. Now, amidst the shifting sands of the cryptocurrency domain, FTX’s resolve to divest its SOL holdings spotlights a potential means to recompense its creditors, especially in light of the SOL token’s staggeringly 650% price inflation in the preceding year despite recuperating from a crisis in November 2022.
As of current trade winds, SOL has sustained its upward climb, establishing itself as the fifth-largest cryptocurrency by market capitalization, trading at a buoyant $147. The sheer velocity of its ascent is pronounced, with a 14% increase in just the day prior and an accolade of a 56% upswing over the last month.
Despite these figures, SOL’s current valuation is still 43% shy of its record peak of $259 reached in November 2021. Notwithstanding this, crypto analysts like Altcoin Sherpa predict that not only will SOL surpass its former zenith during this market cycle, but the scale of the rupture could also be momentous—appraising the likelihood of it touching the $500 mark, with whispers of an even more monumental $1000 milestone not being beyond reason. Altcoin Sherpa, underscoring a firm belief in SOL’s prospects, considers it among their more sizeable investments and postulates the next important benchmark for SOL at $170.