FTX Exchange Seeks Approval to Liquidate $3.4 Billion in Crypto Assets
The collapsed cryptocurrency exchange FTX is planning to liquidate over $3 billion in recovered crypto assets, causing concerns among investors. FTX will appear in Delaware Bankruptcy Court on September 13 to seek approval for the liquidation of $3.4 billion worth of Bitcoin and other cryptocurrencies. The exchange aims to hire Galaxy Digital, a blockchain firm, to oversee the sale and management of the user funds. If approved, FTX could sell up to $100 million of crypto tokens per week, with the possibility of increasing it to $200 million for individual assets. FTX’s holdings include $685 million in Solana, $529 million in FTT, $268 million in BTC, $90 million in ETH, and $42 million in Dogecoin.
Concerns of FTX Fire Sale Impact on SOL and ETH
Investors are worried that FTX’s potential fire sale could negatively affect struggling cryptocurrencies, especially those held by the exchange. SOL, which accounts for a significant portion of FTX’s assets, failed to benefit from the recent news of Visa adding support for Solana’s stablecoin capabilities. Similarly, ETH remains in the red despite ARK Invest filing for the launch of the first spot Ether exchange-traded fund in the US. ETH has seen a decline of 1.1% on September 11 and over 2% for the week, while SOL has fallen around 2% in the past 24 hours, 9% over the week, and nearly 27% in the past month.
Hot Take: FTX Liquidation Sparks Concerns for Crypto Market
The proposed liquidation of FTX’s crypto assets raises concerns in the cryptocurrency market. If approved, the massive sell-off could further exacerbate the challenges faced by struggling cryptocurrencies. Investors worry about the impact on SOL and ETH, as FTX’s fire sale could put bearish pressure on these assets. This comes at a time when SOL missed out on the bullish news of Visa’s support, and ETH failed to gain positive momentum despite ARK Invest’s filing for an Ether ETF. The market will closely watch the court’s decision and its implications for FTX and the broader crypto ecosystem.
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