In a research report published by Matrixport, he talked about the factors that could lead to the collapse of altcoins.
The cryptocurrency market is going through difficult times due to the FTX news flow. FTX’s announcement that it would sell its $3.4 billion cryptocurrency assets led to a collapse in altcoins. Many altcoins separated from the market and suffered serious losses. Matrixport, which examined the issue and prepared a research report, stated that factors other than FTX could deepen the decline of altcoins.
Critical days for altcoins are coming soon!
Matrixport recently published a report on altcoins. In the company’s report, it was stated that the $ 3.4 billion crypto sale expected by FTX will put altcoins in trouble. FTX will prefer to refund fiat currency rather than refund tokens.
On the other hand, the sale of FTX will be carried out in parts. FTX, which will be able to sell $200 million worth of crypto per week, will complete the sales process by the end of 2023.
Matrixport mentioned that different factors other than FTX could also be a factor in the altcoin collapse. “Crypto venture capital (VC) funds are also under great pressure to return funds to their investors,” said Markus Thielen, Head of Research at Matrixport.
Apart from FTX, there are also altcoins held by institutional investors. Projects such as ApeCoin, Aptos, Axie Infinity sold tokens to risk investment management companies in their initial stages.
Matrixport, which revealed that companies managing venture capital funds can also sell altcoins, claimed that this situation, when combined with the FTX process, could mean a collapse for altcoins.
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