On September 10th, crypto KOL MartyParty unexpectedly revealed that Galaxy Digital is in the process of liquidating FTX’s assets over-the-counter (OTC).
Currently, 2 million MATIC tokens are being sold to Coinbase for 1 million USDT and 1 million MATIC tokens are being sold to Kraken for 500 ETH. It’s worth noting that MartyParty emphasized that the liquidation of FTX’s assets will not take place on the open market. Therefore, the community should remain calm and avoid spreading fear, uncertainty, and doubt (FUD).
Regarding OTC trading, MartyParty explained that this type of trading is decentralized, where buyers and sellers engage in direct negotiations without the need for third parties or order books. Consequently, Galaxy Digital’s liquidation of FTX’s assets will not impact the overall market.
However, alongside the asset liquidation, FTX recently submitted an application for selling, pledging, and risk mitigation of over $3 billion in cryptocurrency positions. According to reports from Unchained Crypto, a court hearing related to FTX’s proposal is scheduled for September 13th. Prior to this, U.S. regulators had expressed opposition to FTX’s proposed plans.
Nonetheless, cryptocurrency analyst The DeFi Investor has also voiced their opinion on the X platform, suggesting that there is a high likelihood of significant selling pressure in the market this week if FTX’s proposal is approved during the hearing.
As of April 2023, FTX holds approximately $3.4 billion worth of cryptocurrencies, including SOL, BTC, ETH, APT, DOGE, and more. According to the proposed plan, FTX intends to sell cryptocurrencies valued at up to $200 million each week.