In November last year, the giant crypto exchange FTX officially went bankrupt amidst much fanfare. This set off a major chain reaction that has not been fully resolved to this day. Additionally, since FTX was billions of dollars short, it was unable to repay its one-to-one customers, which is why it still holds many cryptocurrencies. According to the plans, this will soon change.
FTX wants $3.4 billion Sell crypto
The exchange has filed a court request that it wants to sell all remaining assets. Last April, cryptocurrencies were worth $3.4 billion. “The DeFi Investor”, active on the social media platform out of Solana (SOL) existed and was valued at $685 million. The second largest asset was FTX’s native token, FTT. At that time, this amount was $529 million.
Nearly $1.3 billion was denominated in other altcoins with a market value of less than $29 million each. Unfortunately, many coins have recently fallen below last April’s levels, which could mean FTX is forced to sell at a loss. It also has $245 million worth of stablecoins. It is not yet clear what the portfolio is currently worth.
Big selling pressure may come next week 🚨
FTX is expected to receive approval to liquidate its assets in September. 13.
FTX had $3.4 billion worth of crypto in April. The proposed plan calls for selling assets worth up to $200 million per week. pic.twitter.com/4aHnhOVKP1
— The DeFi Investor 🔎 (@TheDeFinvestor) September 9, 2023
The idea that the rest of FTX will sell a few billion dollars worth of cryptocurrencies is fundamentally not good for the market as it creates additional selling pressure. Fortunately, the documents show that the limit is $100 million worth of cryptocurrencies per week. Under certain conditions, this amount could be increased to $200 million per week. This should prevent FTX from disrupting the market too much.
Solana crashes after FTX sell plans
In any case, the news does not seem to have a positive impact on the prices of most tokens. Solana makes up the majority of the portfolio and is down more than 8% from yesterday. The price is now just 20% below the local low hit last June. Then the SEC criticized the token as an unregistered security.
The FTX token (FTT) has crashed over 20% at the time of writing. According to on-chain analytics firm IntoTheBlock, the selling plan overshadows the good news in the market.
Bullish news for #ETH And #SOL seems to be overshadowed by fear-driven market dynamics. Despite positive news about Visa and a potential ETH ETF, FTX’s impending $3 billion liquidation could dictate market action.
— IntoTheBlock (@intotheblock) September 9, 2023
Bitcoin (BTC) is a significantly smaller portion of the portfolio at $268 million, although it is still the third largest. BTC’s significant market cap is currently protecting the price, but the decline remains at 1% for now.