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.
Source:
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.
The prospect of these coins being sold off onto the market regularly every week makes the community extremely worried. With the plan approved, FTX will sell the coins without informing the community, instead, they will only notify the government trustees and creditor representatives. FTX proposed in the plan that they would sell this crypto without prior notice.
This initial proposal met with opposition from some commissioners. They believe that the sale of large amounts of BTC, ETH and similar coins needs to be widely announced to the community first. This can help reduce the impact on the market and keep people fearless. FTX revised the proposal based on officials' opinions. However, FTX still maintains the stance of not announcing sell orders in advance to keep the coin prices at the best possible level.
Perhaps we also need to be alert to these issues, because selling this compared to the market value will not be worth it, so don't be too afraid of the news, but also need to be careful with the crypto you are holding that FTX holds. The current situation seems like the market has not yet reacted strongly to this, after all, this is an ongoing part, besides we are also at a stage where there is also a lot of special attention for for the market sales.