Crypto Exchange FTX Receives Court Approval to Sell $3.4 Billion Worth of Crypto Holdings
FTX, a crypto exchange, has been granted court approval to sell its extensive portfolio of cryptocurrencies worth $3.4 billion, which includes Bitcoin (BTC), Solana (SOL), and Ethereum (ETH). This decision has the potential to negatively impact the crypto market as the sale could lead to further liquidation in the market.
Possible Dip in Solana (SOL) and Bitcoin (BTC) Prices
The sale announcement by FTX has already caused a significant drop in the price of Solana (SOL), from $18.50 to $18 within minutes. The top cryptocurrencies included in FTX’s portfolio, such as Solana (SOL), Bitcoin (BTC), and Ethereum (ETH), are expected to be affected by this bearish event. CoinGape previously reported that FTX Derivatives Exchange had obtained permission from a Federal Judge to liquidate its crypto holdings.
The portfolio also consists of assets in XRP, Wrapped Bitcoin (WBTC), and Aptos (APT). The increased liquidity of these assets may contribute to traders feeling uncertainty about price stability. However, Solana (SOL) has remained resilient against this fear, uncertainty, and doubt (FUD) due to holding the majority of the portfolio.
Majority of FTX’s Solana Staked
Crypto influencer Michaël van de Poppe noted that most of FTX’s assets in Solana (SOL), which amounts to $1.2 billion, are staked and cannot be sold. This could prevent immediate price impact on the cryptocurrency. Tron founder Justin Sun expressed his interest in buying out FTX tokens to reduce their selling impact on the crypto community.
Contemplating an offer for FTX’s holding tokens and assets to reduce their selling impact on the crypto community. Let’s unite to bolster our crypto ecosystem!🙏
— H.E. Justin Sun 孙宇晨 (@justinsuntron) September 11, 2023
Hot Take: FTX’s Sale of Crypto Holdings Raises Concerns for Market Liquidity
The court approval granted to FTX for the sale of its $3.4 billion worth of crypto holdings has raised concerns about market liquidity. The potential liquidation resulting from this sale could have a bearish impact on the top cryptocurrencies, including Solana (SOL) and Bitcoin (BTC). However, the majority of FTX’s Solana holdings are staked, which may mitigate immediate price effects. Tron founder Justin Sun has shown interest in reducing the selling impact on the crypto community by purchasing FTX tokens. The outcome of this sale will likely be closely monitored by market participants.
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