The real victims in the FTX and Alameda story: Small investors

The $730 million crypto assets in the wallets of the bankrupt FTX and Alameda have the power to affect the market.

FTX issue has been on the agenda in the crypto industry lately. The process, which started after FTX went bankrupt in November 2022, is about to result in its return to the market. However, the return process of FTX, which has turned its route back to crypto, seems to be quite painful.

FTX, which went bankrupt and is undergoing restructuring, is on the verge of selling its crypto assets. Transferring Solana (SOL) assets to another wallet, the exchange also activated Solana co-founder Anatoly Yakovenko. Yakovenko suggested distributing SOLs to customers. FTX and its sister company Alameda Research hold $730 million in crypto assets.

Alarm bells are ringing for FTX and Alameda

News that FTX may sell the crypto assets it holds mobilized the market. Many crypto actors state that FTX should meet customers on common ground. One of them is Solana (SOL) co-founder Anatoly Yakovenko. FTX moves cryptocurrencies worth more than approximately $1.5 billion on the Solana network. Especially Bitcoin held in the Solana network attracts attention. Another recorded data was that the exchange transferred $10 million worth of assets in the Solana wallet to another network. These data, which suggested that the stock market was taking action, worried crypto investors.

Struggling to re-enter the market, FTX’s priority is to recover the stock market before customers. Therefore, it is possible that the stock exchange will sell its crypto assets.

Also causing danger is FTX’s sister company, Alameda Research. While FTX has $381 million in crypto assets, Alameda has $338 million in crypto assets. The crypto market is focused on the possible impact of these assets on the market.

FTX focused on crypto assets

FTX borrowers proposed a plan where token sales would be guided by a financial advisor. It will only be allowed to sell $100 million per week for these tokens. However, this limit can be increased up to 200 million dollars in some cryptocurrencies. It was stated that the plan was made to provide hot cash inflow to FTX and not to negatively affect the crypto market.

One of the details included in the plan is the issue of staking. FTX is considering using its assets on the staking side to pay its debts to its customers. Another idea on the stock market’s mind is to create a balanced portfolio with Bitcoin and Ethereum.

Looking at the plan reflected on the agenda, the idea in FTX’s mind is to sell. The stock market is determined to dispose of its assets even if it sells them in accordance with the plan.

FTX conundrum has become annoying

FTX and Alameda have an apparent $730 million in crypto assets. However, in The Block’s news, it is said that FTX borrowers can sell $ 3.4 billion worth of crypto. Neither amount is apparently small. Because FTX creditors still have not been able to access their assets.

Looking at Arkham Intelligence data, assets appear to be dispersed in FTX and Alameda’s crypto wallets. The largest asset is FTT, with $270 million in FTX’s wallet. Another asset is BTC, which is close to $100 million.

The assets held by FTX are not in a position to create apparent volatility. However, if there is an asset of $3.4 billion, as reported by The Block, this could put the market in a bad situation. In short, difficult days await crypto investors again.

It is rumored that Sam Bankman-Fried, whose trial continues on allegations of fraud and market manipulation, will not receive a high fine in the United States. On the other hand, FTX is on the agenda to sell its crypto assets and reopen the exchange. The real losers from this are those who made long-term investments in crypto last year.

Another wallet belongs to Alameda. Interestingly, this wallet also contains new shining altcoins. The largest asset in Alameda’s wallet is Ethereum with $60 million.

Alameda holds $48 million STG, $44 million BIT and $28 million WLD. From these apparent assets, the company has already pocketed $1 million. So which investors mainly hold these coins? Of course, small investors.

Looking at the wallets, the cryptocurrencies that FTX and Alameda can sell appear to be TRX, MATIC, WLD, STG and BIT. Apart from this, organizations can also sell their Bitcoin and Ethereum assets. However, the focus of institutions is on using these two major cryptocurrencies as collateral in their activities. This means organizations can spend altcoins more easily.

Possible impact of FTX and Alameda sales

Possible crypto sales by FTX and Alameda may create unrest in the market. Although crypto investors are prepared for even the worst-case scenario, the market does not allow it. Bad news, regardless of its size, quickly affects the market. Therefore, FTX and Alameda’s bid for survival could endanger crypto investors.