The bankruptcy proceedings of FTX exchange, which made a big impact with its past moves and then went bankrupt, continue to occupy the market with the announcement of its plans to sell $100 million worth of cryptocurrency weekly by the bankruptcy team.
The team’s desire to make payments to creditors as soon as possible also brings along rumors. Concerns about the potential impact of this situation on the market, as well as the fate of a significant amount of tokens held by FTX, continue.
Solana Coin and Other Tokens at Risk
At the top of the list of cryptocurrencies that may experience downward pressure due to the planned sale is Solana (SOL). FTX had taken approximately 10% of Solana’s total supply with its past moves, which seems to have left SOL vulnerable to potential price drops.
The second and third largest crypto assets owned by FTX are none other than Bitcoin (BTC) and Ethereum (ETH). However, due to the large circulating supplies of BTC and ETH, the likelihood of significant price movements is lower compared to others.
There are also two other cryptocurrencies that are likely to be affected by the sale. These are Aptos (APT) and XRP. FTX exchange holds approximately $180 million worth of Aptos and $143 million worth of XRP. This could leave them vulnerable to potential market movements.
Historical Similarities in Cryptocurrencies
When the past precedents of the planned sales by FTX are examined, it can be seen that such situations may have relatively limited impact on cryptocurrency prices.
For example, a recent sale of Solana by FTX, worth approximately $100 million, had very little impact on the token price. Despite the sale, the price of SOL continued to rise. Similarly, the US government had sold 49,000 BTC obtained from Silk Road, and in that case, the drop was minimal as well.
Intervention in Cryptocurrencies
The plans considered by the bankruptcy team may face regulatory barriers with the potential intervention of organizations such as the Securities and Exchange Commission (SEC), as seen in the case of Voyager Digital.
However, despite all their efforts, SEC’s intervention in this case had resulted in failure and paved the way for FTX to continue its sale.
The release of $100 million worth of cryptocurrency weekly by a company holding millions of cryptocurrencies naturally brings along rumors about potential price movements.
