Matrixport announced an important report today. According to the report, some altcoins are at risk. Particular emphasis is on FTX. Matrixport says FTX’s $3.4 billion crypto sale will drag altcoins down. Let’s look at the details.
There are important altcoins: FTX’s plan to sell $3.4 billion in crypto
Matrixport, a crypto services provider, reported that FTX plans to liquidate at least $3.4 billion worth of cryptocurrency to facilitate the return of fiat currency instead of tokens to its users. It is expected that this move will create a problem for altcoins for the rest of the year.
FTX has publicly stated that it aims to sell approximately $200 million worth of cryptocurrency assets every week. As a result, the troubled crypto exchange is preparing to continue offloading assets until the end of 2023. Altcoins will be most affected by this.
Pressure on crypto venture capital funds
In addition to FTX, crypto venture capital (VC) funds also face significant pressure to repay funds to their investors. According to Matrixport Research Director Markus Thielen, these VC funds are looking to cash out. That’s why they will continue to be the leading sellers for altcoins. This dual pressure from FTX and VC funds will have effects. Accordingly, it is expected to put downward pressure on various cryptocurrencies.
The report highlights Solana (SOL) among the altcoins that may be negatively affected by FTX’s crypto selling plans. Concerns about potential sales of FTX are spooking SOL. On the other hand, SOL is not the only altcoin exposed to this risk. ApeCoin (APE), another cryptocurrency held by VC investors, is scheduled to be unlocked on September 17. This also represents 11% of outstanding tokens. The report shows that prices fell by 24% after 4.2% of APE was unlocked on August 17. With bigger unlocks coming up, further price drops are on the cards.
Axie Infinity’s Token (AXS) faces a similar fate
On October 20, Axie Infinity’s token (AXS) will release 11% of its total supply. Accordingly, it will be subjected to a major unlocking process. As noted in the report, after the last unlock event on July 22, AXS experienced a 32% decline. Considering the upcoming unlocking, AXS prices are likely to continue to face downward pressure.
As a result, when we look at Kriptokoin.com, FTX has ongoing sales efforts. Additionally, the crypto market is preparing for a significant influx of assets due to the pressure faced by VC funds. This scenario is likely to cast a shadow over the performance of various altcoins. On the other hand, it makes it very important for investors to follow the developments in the market closely.
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