Huge Crypto Dump Incoming As FTX Plans To Sell Altcoins Worth $4.6B

Although the FTX chapter was two months in the past, the problem is much from over for the crypto trade. At present, new FTX CEO John Ray and his workforce are working to search out as many liquid belongings as doable to make up for the client losses.

As Bitcoinist reported yesterday, they’ve managed to get better round $5 billion in liquid belongings. “We’ve got situated over $5 billion of money, liquid cryptocurrency and liquid funding securities,” Andy Dietderich, an legal professional for FTX mentioned Wednesday in U.S. Chapter Court docket in Delaware.

Huge Crypto Dump Coming?

What might have been much more noteworthy was Dietderich’s assertion that FTX plans to dump non-strategic holdings with a e-book worth of $4.6 billion, which may result in super promoting stress within the crypto market.

Whereas Dietderich additionally pressured that the authorized workforce remains to be working to create correct inner data, which may imply that the sale shall be pushed again a bit, the liquidators may additionally take a staggered method to the method.

The FTX lawyer additionally revealed that the recovered funds don’t embody the belongings seized by the Bahamas Securities and Alternate Fee, which Dietderich estimates at solely $170 million, whereas Bahamian authorities put the worth as excessive as $3.5 billion. That’s as a result of the funds primarily include the illiquid FTT tokens, Dietderich mentioned.

Which Altcoins May Be Hit The Hardest?

Coinbase director Conor Grogan has been wanting by way of all wallets to find out which altcoins FTX nonetheless owns. The most important crypto place, in line with Grogan, is Solana (SOL), of which FTX owns greater than $700 million. To this, nonetheless, the Coinbase director notes that almost all of them are locked, so he’s not positive why they could have counted them.

That is adopted by $575 million in FTT, $371 million MAPS, $127 million OXY, $90 million WBTC, $82 million BONA, and round $500 million “in different random” Solana-based (SPL) tokens.

“My easy mannequin is that the property needs a ‘win’ and good publicity to speak by way of all of the progress they’ve made,” Grogan claimed and continued on to say that in his opinion, the $5 billion determine is much too excessive for what may very well be bought on an open market.

On the identical time, Grogan acknowledged that the $4.6 billion is probably going not simply altcoins, but additionally Robinhood shares, different shares, and actual property. “400 million in Robinhood is a big quantity that’s in all probability pretty valued. The remaining… Laborious to say,” the Coinbase director mentioned.

In the meantime, the on-chain evaluation service “Lookonchain” has drawn consideration to the Alameda belongings receiving pockets, which acquired 30 million USDC from “Alameda Analysis 25” a couple of hours in the past.

The pockets at present holds crypto value $167 million, together with 100 million BIT ($46.6 million), 41 million USDT, 31.Eight 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 Solana (SOL) worth stood at $16.27. The value virtually doubled for the reason that backside at $8.16 on December 29.

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