Re: The implications of FTX's multi-billion crypto sell-off...
FTX wants permission to sell $3.4 billion in crypto assets, including a big chunk of Solana (SOL) tokens. They're also tangled in a lawsuit with LayerZero over $21 million in lost assets. The Delaware Bankruptcy Court will decide today, September 13, 2023. FTX plans to sell tokens, starting with $100 million a week, possibly going up to $200 million for each type. FTX owns $1.16 billion in SOL tokens, a big part of their $3.4 billion crypto stash.
I will provide you a complete chart of crypto assets owned by FTX now. Solana community must be feeling worry about this. The price of solana has been plunged so hard due to this news. The dump from FTX will make it go down even deeper in a short time.
I expect panic selling for solana to happen in upcoming days. Im not feeling worry about BTC and ETH caused by these cryptos have so many daily trade volumes that can prevent the dump.
Solana is just having 300 millions daily trade volume. It will be so difficult to dump it as FTX owned 3/1 compared with daily trade volume of solana.
Could this possibly have a major impact on the crypto market? I personally don't think so because of the $100-$200M selling limit per week. Also, FTX's Solana exposure is vested, meaning they won't be able to access those tokens until 2028. But, as we all know, anything is possible in crypto! Let's see how the market reacts.
I could not have major impact for whole of market but i will say yes for solana. Solana is heavily invested by FTX. The solana community must move to another crypto to protect its asset from the dump by FTX