TheDeFinvestor’s tweet on X (formerly Twitter) has provided information about the possibility of FTX exchange undergoing asset liquidation on September 13. The court is expected to give FTX the green light before that date, which is significant because it could create significant selling pressure in the cryptocurrency space.
Records indicate that FTX currently holds assets including Solana (SOL) worth $685 million, FTX token (FTT) worth $529 million, Bitcoin (BTC) worth $268 million, and various other Altcoins, with an estimated total reserve of around $3.4 billion. However, in an article from April 2023, as reported by BeInCrypto, the exchange’s lawyers claimed to have recovered assets worth $7.3 billion.
According to TheDeFinvestor, FTX publicly reported the list of Altcoin reserves in their portfolio on January 17. If approved by the court, it’s possible that these Altcoins could be released into the market starting from September 13. The list below shows the assets currently held by FTX.
According to some sources, the proposed plan is to sell assets valued up to $200 million per week. FTX has also confirmed that they will use Galaxy Digital for these sales to avoid market manipulation. Earlier on August 24, FTX proposed a plan to appoint Mike Novogratz’s Galaxy Digital Capital Management as the investment manager responsible for overseeing the sale and management of the recovered cryptocurrency assets. Both parties are collaborating specifically to anonymously sell the exchange’s Altcoin reserves and reduce the risk of market manipulation.
FTX officially declared bankruptcy in November 2022. At that time, the news of FTX’s bankruptcy had a significant impact on the cryptocurrency market, pushing many coins to historic lows, with Bitcoin dropping to around $16,300 and Ethereum falling to $1,200. At the time of writing, the prices of these cryptocurrencies have increased significantly. Therefore, this move by FTX to liquidate assets rather than directly refund investors with cryptocurrencies might be partly explained by these price increases.