Cryptocurrencies
FTX Could Dump These Tokens after Discovering $5.5B in Liquid Assets
Following the intense investigation leading to the uncovering of $5.5B FTX liquid assets, the troubled crypto exchange could liquidate or dump some of these tokens including $529M of FTT, $685M of Solana, among others.
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So liquidators were counting token prices on the day of filing, and consider the $529M of FTT to be "liquid" in this calculation, as well as $685M of Solana which would mega nuke the SOL market. pic.twitter.com/UTIxQ4EDdX
— Adam Cochran (adamscochran.eth) (@adamscochran) January 17, 2023
On Jan. 17, FTX revealed in a post that it had uncovered $1.7 billion in cash, $3.5 billion in crypto assets and $0.3 billion in securities in accordance with the firm filing for Chapter 11 bankruptcy in November.
Meanwhile, the list of illiquid tokens contains a Donald Trump prediction token as well as animal fundraising coins and other tokens available on Solana projects.
Other liquid assets’ holdings of the collapsed FTX exchange include XRP, Doge, Aptos (APT), TON, Polygon (MATIC), and BitDAO (BIT). In this regard, Cinneamhain Ventures partner, Adam Cochran, remarked that everything is going to tank the price if it is sold.
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And this is only the "liquid" tokens they counted.
You maybe get some of the value out of the BTC and ETH, and you'll get the stables. Everything else is going to tank the price if you sell it.
So you're looking at $600M on $10B+ at best?
$0.06 on the dollar?
— Adam Cochran (adamscochran.eth) (@adamscochran) January 17, 2023
It was also gathered that the illiquid crypto tokens identified by debtors could also be sold, thereby precipitating a price crash in the crypto market.
Fortune reporter Leo Schwartz on Jan. 18 identified a breakdown of the entities that each crypto asset belongs to. These include roughly 10 billion Serum (SRM), LUNA, and Solana-wrapped versions of BTC and ETH.
A breakdown of which entities the crypto assets belonged to: pic.twitter.com/9gqYgMKd9x
— Leo Schwartz (@leomschwartz) January 17, 2023
Although most of these project tokens such as BEAR, MEDIA, TRUMPLOSE were unknown and obscure. Schwartz thus concluded that FTX donated about $93 million in political donations which are under review.
SBF Again Dishes Out Info
It appears that the founder of the collapsed FTX exchange Sam Bankman-Fried (SBF) is not perturbed as he emerged again in a new blog post on Jan. 18 claiming that the FTX report’s information regarding the state of the business was inaccurate and misleading.
SBF argued in the piece that the FTX US was solvent when it was turned over to S&C [Sullivan & Cromwell], and has remained substantially solvent till now.
As the investigation into the collapsed FTX exchange continues, there is no mincing word that more facts will be uncovered. The authorities are thus urged to do due diligence speedily.
