FTX Plans Altcoins Selloff Worth $4.6B; Is A Massive Crypto Dump Coming?
The FTX debacle of two months ago is far from over, as the crypto industry continues to feel the heat of the spectacular collapse. Accordingly, the new FTX board, under the management of John Ray as the new CEO, is working on finding more liquid assets for the embattled crypto exchange.
A Likely Crypto Dump
According to reports, the new FTX CEO, John Ray, and his team have managed to recover close to $5 billion in liquid assets to make up for the massive customer losses incurred.
Speaking about the recovery on Wednesday, FTX’s legal counsel, Andy Dietderich, explained that the team had found billions of dollars worth of liquid assets, including liquid crypto and investment securities.
Andy disclosed this during the public hearing in the United States Bankruptcy Court in Delaware last month. Furthermore, Andy remarked about FTX’s move to dump all its non-strategic holdings valued at $4.6 billion according to the current market prices of each digital asset.
It is worth noting that dumping such significant assets is capable of triggering colossal selling pressure on the broader crypto market. The FTX attorney also stressed that the legal team is currently working on developing an accurate internal record. In this case, the purported sale would be delayed a bit, which could give liquidators ample time to take a careful approach to the sales.
In addition, Andy revealed that the recovered assets do not include seized funds by the Bahamas Securities and Exchange Commission. According to the attorney’s estimate, the confiscated funds are worth $170 million, while the Bahamian authorities estimate them to be over $3.5 billion.
Commenting on the different valuations of the assets, Andy noted that it is because the funds consist of illiquid FTT tokens, which they did not include in the initial estimation.
Which Altcoins Would Be Affected?
Conor Grogan, a Coinbase director, has been assessing all wallets to determine the amounts of altcoins owned by FTX. According to the Coinbase director, FTX’s most prominent crypto position is Solana, as FTX still holds over $700 million worth of its native tokens.
However, Grogan explains that most of the altcoins owned by FTX are locked, and he is still determining why the team included the funds in the calculations. Aside from Solana, FTX also owns $575 million in its native token, FTT, $127 million in OXY, $90 million in wBTC, $371 million in MAPS, $82 million in BONA, and nearly $500 million in other Solana-based assets.
Grogan, meanwhile, acknowledged that the total valuation of FTX’s funds, which stands at $4.6 billion, might not consist of only altcoins. He added that they include Robinhood shares, real estate, and other stocks.
The Coinbase executive mentioned that $400 million worth of Robinhood stocks is a significant amount and is fairly valued. However, he has nothing to say about the rest.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
