The latest management of FTX (the crypto exchange that has become bankrupt) outlined a $5.5B worth of assets to be sold for repayment to the creditors. This has raised concerns that crypto assets in a great amount could be sold on markets. On the 17th of January, the debtors of the crypto exchange indicated that there is nearly $3.5B worth of crypto along with $1.6B linked to the defunct crypto exchange.
FTX Tends to Dump Assets in Great Amounts to Repay Its Debts
FTT (the local token of FTX) and SOL (the local token of Solana) are considered to be the best holdings of the crypto exchange. The liquid assets take into account BitDAO (BIT), TON, Polygon (MATIC), Aptos (APT), DOGE, and XRP. The tokens were valued by the liquidators at the time when the bankruptcy petition was filed. Adam Cochran (a partner of Cinneamhain Ventures) remarked on this.
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He stated that liquidators were determining the prices of the tokens when the filing was submitted. As per their calculation, he added, a $529 million worth of FTT tokens is liquid. On the other hand, Solana tokens have a worth of approximately $685 million. In his words, this would prove to be a bombshell for the SOL market. As per Cochran, they have just counted the liquid assets. Everything other than them will potentially push the prices significantly downward after a sale.
Community Fears for Potential Price Slumps Due to FTX’s Asset Sale
A series of liquid tokens has additionally been indicated as a cause of posing concerns that a price collapse may take place as a result of the sale. On the 18th of January, Leo Schwartz (a reporter on Fortune) additionally shared the report by FTX. He brought to the front that the illiquid assets include almost ten billion worth in LUNA, Serum (SRM), as well as ETH and BTC’s Solana-wrapped versions.
However, several were ambiguous tokens including MEDIA, BEAR, and TRUMPLOSE. He categorized TRUMPLOSE to be an “Easter egg” interconnecting the Democrat politicians that support Alameda and FTX with huge donations. TRUMPLOSE’s status is that of a prediction token utilized by FTX during the presidential election of the United States.
Traders were permitted to buy TRUMPLOSE or TRUMPWIN tokens. FTX possesses nearly 14M worth of the respective tokens. BEAR Coin counts as a crypto token structured to assist animals via decentralized fundraising through collaboration with animal lovers and NGOs. The balance sheet of FTX has $190B worth of those tokens.