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.
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https://decrypt.co/155844/ftx-looks-to-offload-billions-in-crypto-heres-what-it-meansCould 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.
With the affected coins, definitely. But seeing as there's a limit per week, I don't think we'd be seeing anything big of a dump, we might see a lot of traders taking advantage of the weekly sale though and make moves on the market, so you can expect a lot of changes within those say 2,3 days after the sale, but after that it should become relatively steady again. Cycle would probably repeat, and maybe only after a few months can we see if any significant change actually happened.
If we do add the confidence of investors in SOL though, then things change. A lot of holders would've probably sold their coins temporarily for now since this sell off would inevitably stagnate, if not dump the market of SOL. What would be the use of hodling it by then? They'd probably sell it off even if the request hasn't gone through yet, so a drop in the SOL market would probably be expected.