Concerns about FTX selling assets? In-depth analysis: ETH/UNI/HXRO/FTT with the largest transfer volume

Trader JZ observes asset transfers in FTX wallets and speculates whether these coins may be assets expected to be liquidated in the FTX hearing, presenting potential trading opportunities. Investigating the FTX wallet, compiling discussed asset transfer activities, and discussing the possibility of these assets being used for liquidation.

FTX Wallet Transfers Significant Assets - Which Coins Are Involved?

Trader JZ noticed a significant influx of assets into FTX wallets from August 31st to September 6th. Could these assets be related to the assets discussed in the late August bankruptcy court proceedings?

According to investigations, the FTX under discussion is 0x9ad, one of the many FTX wallets marked by the blockchain data analytics company Arkham. As of the deadline, the FTX wallet series holds $388 million, with 0x9ad holding $25 million. The 0x9ad wallet indeed showed some fund transfers to Binance and Coinbase earlier this year.

Prior to August 31st, the last wave of asset transfers occurred two weeks prior, with small amounts involved, making this recent transfer particularly noteworthy.

Here is a breakdown of the significant assets transferred to 0x9ad from August 31st to September 6th:

Overall, the total value of assets transferred during this period to 0x9ad amounts to $17.86 million. Other assets with a value less than $100,000 include WBNB, SXP, AKRO, LINK.

Is FTX Planning to Sell Assets?

Regarding the gradual liquidation plan of $30 billion in cryptocurrency, it is currently under evaluation by the bankruptcy court, so a decision is not imminent.

Reviewing the liquidation plan: FTX plans to refund in USD, hedge with BTC, ETH, and gradually liquidate $30 billion in cryptocurrency.

Furthermore, as per the investment agreement, FTX will be represented for liquidation by Galaxy Digital, which will have the authority to execute financial operations such as trading options, futures, collateral, redemption, etc.; hence, it won't be a straightforward "sell-off" action.

Part of Galaxy Digital's role in the agreement with the court is also to mitigate potential downside risks, so whether it will directly impact the market remains to be seen.

Observing the 0x9ad Wallet

After bankruptcy, any transactions involving tens of millions of dollars will go through this account, with the highest frequency of transactions with cross-chain bridge Wormhole, as well as interactions with market makers Wintermute and Cumberland DRW.

If the court approves the liquidation by Galaxy Digital, monitoring the interaction between FTX-related wallets and Galaxy Digital wallets will clarify any asset sell-off activities; currently, there is no reason to sell assets through this wallet.

Official Response from FTX?

FTX officially stated that they have been actively bridging tokens from various blockchains back to their native blockchains. FTX has also been moving SOL and other tokens from existing wallets to FTX's qualified custodian BitGo.

It seems these asset movements are likely just asset consolidations.

FTX has been actively bridging tokens from various blockchains back to their native blockchains. FTX also has been in the process of migrating SOL and other tokens from existing wallets to BitGo, FTX’s qualified custodian.

— FTX (@FTX_Official) September 6, 2023