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FTX: A tidal wave ready to sweep through the crypto market?

Mon 11 Sep 2023 ▪ 4 min of reading ▪ by Mikaia A.
Event

There will be some rumblings in the crypto industry in the next few days. Because if approved, FTX will liquidate a large number of its digital assets. There’s talk of a plan to sell $200 million in cryptocurrencies. Something to keep an eye on!

Image de robinet, pièces de cryptomonnaies et logo de FTX

In brief:

  • FTX could get the green light to sell cryptocurrencies in bulk
  • Wealthy at around $3.4 billion, the fallen crypto exchange will liquidate the equivalent of $200 million a week

FTX to sell its crypto holdings

In early September, the press reported on a massive SOL sale, raising fears of a crash in the cryptocurrency market. A few days later, there was movement in FTX’s crypto wallets. SOLs, ETHs, BTCs and MATHs were transferred without any explanation from John Ray III’s team.

According to Coincu, there are currently rumors of a possible liquidation of FTX’s crypto-assets by September 13. For now, this remains speculation.

However, we all know that Sam Bankman-Fried’s cryptocurrency exchange recently filed a petition to obtain the green light from the bankruptcy court. This authorization would concern the management and sale of its crypto assets.

For what purpose? Repayment of his creditors? Putting the fallen crypto exhange back on track? Or both? It seems likely that FTX is using its digital assets to generate passive returns.

FTX’s new crypto asset manager, Galaxy Digital, would certainly have spun him a worthy piece of advice. The rebirth of this former crypto giant is eagerly awaited by many.

A richly endowed crypto wallet

The image pinned up in tweets from the crypto community regarding FTX’s possible crypto asset sales demonstrates a well-stocked wallet.

Here’s a non-exhaustive list of FTX’s cryptocurrencies, bearing in mind that a mention of “many assets have been discovered in the meantime” accompanies the figure in question:

  • 685 million dollars in SOL;
  • 529 million dollars in FTT;
  • 268 million dollars in BTC;
  • 90 million in ETH;
  • 67 million in APT;
  • 42 million dollars in DOGE;
  • 39 million in MATIC;
  • 35 million dollars in BIT;
  • 31 million dollars in TON;
  • 29 million in XRP;
  • $245 million in stablecoins.

That’s about $2.06 billion. Subtract this from the announced balance of $3.4 billion, and you’ll be wondering what happened to the remaining $1 billion.

FTX explains:

“Debtors currently have limited visibility into the token composition of cryptocurrency balances on certain third-party exchanges. Once obtained, the information provided by these exchanges is likely to increase the balances of certain tokens listed here.”

Not to mention that FTX borrowed a lot of money from other crypto companies back in SBF’s day. However, the current management team is thinking of recovering the assets thrown out of the window by young Samuel, particularly in the sports sector.

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Mikaia A. avatar
Mikaia A.

La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.