Home Business Bankrupt crypto exchange prepares for massive sell-off, market worried

Bankrupt crypto exchange prepares for massive sell-off, market worried

Bankrupt crypto exchange prepares for massive sell-off, market worried

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.

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.

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.

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