FTX, the cryptocurrency exchange that went bankrupt in November 2022, is preparing to liquidate its altcoin reserves on September 13. According to experts, liquidation means intense selling pressure on the market.
Watch out for September 13: FTX will dump these altcoins/tokens on the market
According to current reports, bankrupt FTX is about to get bankruptcy court approval to liquidate its altcoin reserves. According to the information obtained, the court may give a green signal to the FTX bankruptcy team until September 13. This indicates a huge selling pressure for the cryptocurrency market.
FTX currently holds $685 million worth of Solana (SOL) and $529 million worth of FTT, records show. Apart from this, he has Bitcoin (BTC) worth $ 268 million. The stock market’s total reserves are worth approximately $3.4 billion.
Big selling pressure is potentially coming next week🚨
FTX will likely get approval to liquidate its assets on Sept. 13.
FTX had $3.4B in crypto in April. The proposed plan is to sell assets worth up to $200M per week. pic.twitter.com/4aHnhOVKP1
— The DeFi Investor 🔎 (@TheDeFinvestor) September 9, 2023
According to @TheDeFinvestor from X, FTX publicly reported the following altcoin reserves in filings on January 17th. September 13 may be the date when these cryptocurrencies will be released into the market. The list and weights are as follows:
- Solana (SOL): $685 million (locked)
- FTX Token (FTT): $529 million
- Bitcoin (BTC): $268 million
- Ethereum (ETH): $90 million
- Aptos (APT): $67 million
- Dogecoin (DOGE): $42 million
- Polygon (MATIC): $39 million
- BitTorrent (BIT): $35 million
- Toncoin (TON): $31 million
- XRP (XRP): $29 million
FTX works with Galaxy Digital for refunds
Meanwhile, as Kriptokoin.com reported, FTX agreed with Galaxy Digital for asset management in August. The two are specifically teaming up to sell the exchange’s altcoin reserves to the markets anonymously and reduce the risk of market manipulation.
About the partnership, FTX lawyers said, “Bitcoin and ETH hedging will allow Borrowers [FTX] to limit potential downside risk prior to the sale of such Bitcoin or ETH. “Buying certain digital assets will benefit property and ultimately creditors by creating low-risk returns on normally dormant cryptocurrencies.” Previous reports had shown that the exchange had started transfers for several altcoins.
The Solana address 6b4aypBhH337qSzzkbeoHWzTLt4DjG2aG8GkrrTQJfQA, which is marked as an FTX cold wallet, is transferring funds. Tokens such as LINK, SUSHI, LUNA, and YFI on the Solana are transferred to the Ethereum through bridges such as Wormhole. The transfer has been since…
— Wu Blockchain (@WuBlockchain) September 2, 2023
FTX is hoping the stock will rise so it can distribute it to customers still waiting for their money to be refunded. The company, currently led by restructuring expert John J. Ray III, worries that selling them all at once will cause the price to drop to the benefit of short sellers and other market participants. He turns to market experts to figure out how best to avoid this with methods like weekly sales limits.
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