Massive Crypto Dump Coming As FTX Taps To Sell Altcoins Worth $4.6B

crypto sell pressure

Although the FTX bankruptcy was two months ago, the issue is far from over for the crypto industry. Currently, new FTX CEO John Ray and his team are working to acquire as many liquid assets as possible to compensate for customer losses.

As Bitcoinist reported yesterday, they managed to recover about $5 billion in liquid assets. «We have over $5 billion in cash, liquid cryptocurrencies and liquid investment securities,» Andy Dietderich, an attorney for FTX said Wednesday in US Bankruptcy Court in Delaware.

Massive Crypto Dump Coming?

What may be even more significant is Dietderich’s statement that FTX plans to dump non-strategic holdings with a book value of $4.6 billion, which could lead to massive selling pressure in the crypto market.

While Dietderich also stressed that the legal team is still working to create accurate internal records, which could mean pushing back the sale a bit, the liquidators could also take a phased approach to with the process.

The FTX lawyer also pointed out that the recovered funds do not include the assets seized by the Bahamas Securities and Exchange Commission, which Dietderich estimates to be only $170 million, and Bahamian authorities put the value as high as $3.5 billion. That’s because the funds are primarily made up of the illiquid FTT tokens, Dietderich said.

Which Altcoins are the hardest?

Coinbase director Conor Grogan is looking through all the wallets to determine which FTX altcoins are still owned. Solana (SOL) is the largest crypto site, according to Grogan, of which FTX owns more than $700 million. However, the director of Coinbase notes that most of them are locked, so he is not sure why they might be included.

This is followed by $575 million in FTT, $371 million MAPS, $127 million OXY, $90 million WBTC, $82 million BONA, and about $500 million “in other random tokens based on Solana (SPL).

«My simple model is that the estate wants a ‘win’ and good publicity to talk about all the progress they’ve made,» Grogan being claimed and he went on to say that the $5 billion figure is far too high, in his opinion, for what could be sold on an open market.

At the same time, Grogan admitted that the $4.6 billion is probably not only altcoins, but also Robinhood shares, other stocks, and real estate. “400 million is a significant number in the Robinhood that is probably fair value. The rest… Hard to say,” the Coinbase director said.

Meanwhile, the analysis service is on the “Lookonchain” chain. draw attention to a wallet that receives Alameda assets, which received 30 million USDC from «Alameda Research 25» a few hours ago.

The wallet is currently worth $167 million, including 100 million BIT ($46.6 million), 41 million USDT, 31.8 million USDC, 17,177 ETH ($24 million), 4.6 million SUSHI ($5.2 million), 10 million WXRP ($3.76 million), 6.86 million RNDR ($3.2 million), and 6.86 million SRM ($1.6 million).

At press time, the price of Solana (SOL) was $16.27. The price almost doubled from the bottom at $8.16 on December 29.

The price of SOL has almost doubled from the bottom | Source: SOLUSD on TradingView.com

Featured image from 3844328 / Pixabay, Chart from TradingView.com

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