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How to view FTX's weekly $100 million liquidation dump? Messari founder: Limited impact

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How to view FTX

The recent approval by the U.S. bankruptcy court for the FTX restructuring team to begin the gradual liquidation of cryptocurrency assets has raised concerns across various sectors. However, many analysts and crypto institutions have emphasized that the impact on the market is expected to be minimal.

U.S. Court Approves FTX Coin Sale

It was previously reported that a U.S. bankruptcy court has ruled to allow the FTX bankruptcy team to sell, pledge, and hedge its holdings of cryptocurrencies to repay creditors.

Cryptocurrency investment firm Galaxy Digital can assist FTX in liquidating up to $200 million in assets per week, with FTX also requesting Galaxy CEO Mike Novogratz to serve as an advisor.

FTX Changes Weekly Sale to One Billion Without Prior Notice

FTX's move faced opposition from the U.S. Trustee, who believes the plan to sell assets is not clear.

According to a report from CoinDesk, as a result, the FTX bankruptcy team reduced the sale amount from $200 million to $100 million, still without prior notice but requiring review by the creditors' committee and the U.S. Trustee.

FTX Holdings: SOL Dominates

According to previous statistics, the market value of the cryptocurrencies held by FTX.com and FTX US as of 8/31 was $3.4 billion:

  • SOL: $1.162 billion

  • BTC: $560 million

  • ETH: $192 million

  • APT: $137 million

  • USDT: $120 million

  • XRP: $119 million

  • BIT: $49 million

  • STG: $46 million

  • WBTC: $41 million

  • WETH: $37 million

Is FTX Dumping Overstated?

Recently, BTC and ETH briefly dropped below $26,000 and $1,600, causing concern among cryptocurrency investors about potential dumping by FTX.

However, Messari founder Ryan Selkis cited data from the Solana Foundation to point out:

FTX can only unlock 9.2 million SOL per month, approximately $172 million, significantly reducing the impact of liquidation. Despite active short selling, the locked schedule of SOL and some OTC trading may lessen the market impact of liquidation.

CoinDesk also quoted the views of FalconX Research Director David Lawant and Arca CIO Jeff Dorman.

David Lawant similarly believes that some assets have locking mechanisms, limiting the impact.

Jeff Dorman stated:

This is not every venture firm rushing to dump. This is a process under court order, and Galaxy will be selling very slowly.