FTX Wallets on the Move: Potential Sell-Off Ahead?
Following the FTX crash in November 2022, a significant amount of tokens worth over $3.5 billion remained idle in the exchange’s wallets. However, recent activities indicate that these tokens are now being moved.
Key Points:
– The FTX wallets still hold large amounts of various tokens, including a significant portion of Solana (SOL) tokens.
– An X user raised awareness of the large amounts being moved out of the wallets, suggesting a potential sell-off.
– Tokens such as Ethereum’s ETH, FTX’s FTT Token, Sushiswap’s SUSHI, and Uniswap’s UNI, among others, have already been transferred out, totaling around $14 million.
– Speculations about a sell-off arise even though the tokens were transferred to another holding wallet, possibly in the custody of Galaxy Digital.
– The transfer coincided with FTX’s motion to employ Galaxy Digital to hedge its remaining assets against volatility.
It is plausible that the exchange is moving assets into Galaxy Digital’s custody, which may result in a sell-off since FTX could sell up to $100 million in tokens per week. Additionally, FTX founder Sam Bankman-Fried is expected to face trial on fraud and mismanagement charges in October.
Hot Take: The movement of tokens from FTX’s wallets raises concerns about a potential sell-off, especially with large amounts of assets being transferred. The involvement of Galaxy Digital and the upcoming trial for FTX’s founder add further complexity to the situation. Crypto investors should keep a close eye on these developments and assess potential risks accordingly.
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