In the sprawling world of cryptomarkets, the potential release of FTX’s holding tokens stands out as a significant occurrence. With a staggering figure of $1.3 billion in play, the implications for the market are far from negligible. As first reported by market research powerhouse Messari, FTX’s coffers include roughly $1.3 billion liquid assets, with liquidation possibly commencing this week.
The reaction of the market, however, is expected to vary across tokens. Industry experts speculate that FTX’s Bitcoin (BTC) holdings, which round up to approximately $353 million, are unlikely to significantly sway the market given they constitute a relatively diminutive 1% of the asset’s weekly volumes.
On the other hand, FTX and Alameda Research’s $20 -$30 million holdings of Dogecoin (DOGE), Polygon (MATIC), and Tron (TRX) amount to a much chunkier slice of weekly volumes – 12% to be precise, an amount that can be expected to affect asset prices in the market.
A considerable portion of FTX’s holdings is in the form of Solana (SOL), amounting to $720 million. However, the bulk of these assets are not immediately liquid, with only $9.2 million SOL due to be released per month.
The last few months could be generously described as “chilly” for the digital asset market. Last year witnessed a turbulent cascade of collapses, most notably of the Terra ecosystem and FTX itself, causing a significant dent in the market. Amidst this disarray, the looming FTX liquidation has sparked concerns of further impacting the prices of assets, especially for DOGE, MATIC, and TRX.
As part of FTX’s ongoing bankruptcy proceedings, a recent court filing revealed a total of $7 billion in digital assets, venture investments, and recovered property. These assets are said to include about $3.4 billion in cryptocurrencies, with Solana, Bitcoin, and Ethereum taking the lead. The firm is also reported to be in possession of 38 Bahamian properties, collectively valued at $200 million, as well as $4.5 billion in 438 venture investments.
However, amidst these turbulent times and potential upheavals, there might be a silver lining in the form of new, interested parties. Over 75 companies, ranging from cryptocurrency firms to individual investors, have reportedly expressed interest in acquiring the aforementioned assets. In this tumultuous cryptomarket, it appears that even the specter of liquidations can open up new opportunities.
Source: Cryptonews
