- FTX set to liquidate an approximate $3.4 billion in cryptocurrencies come September 13th.
- Potential repercussions on the crypto market have caused ripples of concern among investors.
Exciting notification from Blockchain researcher and great supporter of Bitcoin, XRP, SHIB, IOTA, VeChain, and Cardano. In his recent tweet, Collin Brown @CollinBrownXRP draws attention to the monumental asset liquidation by FTX, suggesting a possible price drop in the crypto market.
Crypto prices expected to drop! pic.twitter.com/Yl3EHVQC7H
— Collin Brown (@CollinBrownXRP) September 11, 2023
Market Anxiety Over FTX Liquidation
The cryptocurrency world is rife with anticipation over the predicted significant market movements in the coming week. FTX, a crypto exchange currently facing challenges, is likely to secure court permission to dispose of a staggering $3.4 billion in digital currencies. With the liquidation expected to begin potentially by September 13, many stakeholders are wary of its possible impact on the market.
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Well-regarded crypto analytics firm, IntoTheBlock, warns that despite encouraging news on other fronts, the imminent FTX liquidation could significantly dictate market trends. Yet, as pointed out by prominent crypto commentator, Hitesh.eth, immediate panic might be unwarranted. The liquidation may not begin right away after the approval, and FTX’s court papers express an intention to sell a maximum of $100 million in digital assets per week – occasionally pushing to $200 million.
FTX’s Crypto Assets in Focus
The likely fire sale has stirred unease, especially regarding FTX’s altcoins. Their records reveal that Solana constitutes the most significant chunk of their holdings, valued around $685 million. This uncertainty has caused a discernible price dip in SOL of 5.1% in just a day. Currently, SOL’s price is approximately $18.52, a noticeable downturn from its previous stable position.
Moreover, FTT, FTX’s native token, is valued at $529 million. Given FTT’s limited liquidity, there are rising questions about how FTX plans to liquidate such tokens.
Legal Hustles Amid Financial Struggles
To recover assets amidst its fiscal challenges, FTX is actively exploring legal avenues. Notably, the exchange has filed a clawback lawsuit against LayerZero, an omnichain platform, aiming to retrieve $21 million. Legal proceedings have also been initiated against LayerZero’s COO, Ari Litan, demanding a hefty sum of $13 million. FTX is also purportedly reconsidering its promotional fees to sports celebrities, including Naomi Osaka, whom the exchange had previously generously compensated for marketing campaigns.
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