FTX’s Solana Wallet Moves $10 Million in Altcoins to Ethereum Network
FTX’s Solana wallet has transferred $10 million worth of altcoins to the Ethereum network through the Wormhole bridge in the past four days. This has raised concerns about potential token dumps in the market.
Debtors Propose Structured Approach to Crypto Sales
- FTX debtors have submitted a filing proposing a structured approach to crypto sales to prevent market price disruptions.
- The proposal suggests a weekly limit of $100 million for selling most tokens, with the possibility of increasing this cap on a token-by-token basis.
- Specific guidelines are outlined for the sale of “insider” assets like Bitcoin and Ether.
- The proposal recommends a ten-day notice period before initiating any sales to ensure transparency and prevent sudden market movements.
- This filing is currently not legally binding but will undergo review by the Delaware Bankruptcy Court on September 13.
FTX Debtors Disclose Crypto Holdings Worth $3.4 Billion
- In April, FTX debtors revealed their crypto holdings amounting to $3.4 billion.
- The breakdown of holdings in more liquid assets like Bitcoin and Ether remains undisclosed.
- FTX debtors plan to employ a financial adviser to guide token sales and minimize impact on token prices.
- Hedging holdings in Bitcoin and Ether is part of the strategy to mitigate price volatility during asset sales.
- The estate is open to staking certain tokens to potentially generate returns for creditors.
Potential Appointment of Galaxy Digital Capital Management
The bankrupt crypto exchange previously proposed appointing Mike Novogratz’s Galaxy Digital Capital Management to oversee the sale and management of its recovered crypto holdings.
Hot Take
FTX’s movement of $10 million in altcoins to the Ethereum network has sparked concerns about potential token dumps. The proposed structured approach to crypto sales aims to prevent market disruptions, with specific guidelines for insider assets. FTX debtors have disclosed crypto holdings worth $3.4 billion and plan to employ a financial adviser to minimize impact on token prices. The estate also intends to hedge holdings and explore staking options. The potential appointment of Galaxy Digital Capital Management could provide expertise in managing recovered crypto holdings. The outcome of the filing’s review by the Delaware Bankruptcy Court on September 13 will be critical in shaping the future of FTX’s asset management strategy.
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