The cryptocurrency market has been rattled by uncertainty from the latest developments surrounding the now-defunct FTX exchange. This beleaguered crypto trading platform has proposed a hefty liquidation of over $3 billion in recovered crypto assets, setting off alarm bells among anxious investors.
The leading crypto markets intelligence platform Mesari shed light on the looming specter of a potential $3 billion liquidation that has cast a shadow over the already fragile world of cryptocurrencies:
FTX, once a prominent cryptocurrency exchange before its dramatic implosion in November 2022, is slated to appear in Delaware Bankruptcy Court on Wednesday, September 13. The objective is to seek approval to liquidate a staggering $3.4 billion in Bitcoin (BTC) and various other cryptocurrencies.
This eyebrow-raising news comes on the heels of FTX’s decision, now under the stewardship of bankruptcy legal experts, to enlist the services of blockchain firm Galaxy Digital. If greenlit, this plan would grant FTX the ability to offload up to $100 million worth of crypto tokens each week, potentially increasing this cap to $200 million for individual assets.
The numbers unveiled in January paint a vivid picture of FTX’s cryptocurrency holdings: $685 million in locked Solana (SOL) tokens, $529 million in FTT, $268 million in BTC, $90 million in Ethereum (ETH), and $42 million in Dogecoin (DOGE), among others.
A sense of unease looms as the crypto community awaits the court’s verdict. Concerns abound that a potential FTX-led fire sale could inflict bearish repercussions on cryptocurrencies, particularly those entangled in the exchange’s web.
For instance, Solana, comprising the lion’s share of FTX’s assets, is under considerable pressure. Consequently, SOL needs to capitalize on the recent positive news of Visa’s support for Solana, which expands its stablecoin capabilities.
Similarly, Ethereum’s price remains red, despite news of Cathie Wood’s ARK Invest filing for the launch of the first spot Ether exchange-traded fund (ETF) in the US. On September 11, the second-largest cryptocurrency experienced a 2.53% drop, marking losses of over 2% for the week and more than 13% in the past 30 days.
Meanwhile, SOL declined approximately 0.10% in the past 24 hours, 9% over the week, and a staggering 27% over the month.
