FTX Speeds Up Bankruptcy Liquidation Process: Sells $8 Million Worth of Cryptocurrency Holdings
FTX, currently in the midst of bankruptcy proceedings, has commenced a sell-off of its cryptocurrency assets, sparking speculation in the market. The sale of FTX’s crypto assets, coupled with a significant increase in the crypto market, has prompted questions about the potential impact on market dynamics and investor sentiment.
FTX Offloads ETH & JSOL Reserves
In order to expedite the liquidation process, FTX has undertaken a substantial sell-off of its crypto holdings. Notably, it transferred 50,000 JPool Staked Solana (JSOL) tokens, valued at nearly $6.6 million, to an undisclosed wallet. Additionally, FTX sold 542 ETH to Wintermute, a prominent crypto market maker, equivalent to $1.36 million.
These transactions, along with an internal transfer of 10,700 ETH from Alameda Research, equivalent to $20.8 million, have contributed to increased outflows in the market, potentially putting downward pressure on prices and impeding the ongoing crypto rally.
Market Impact & Ethereum Surge
Despite FTX’s significant liquidation activity, the price of Ethereum has remained resilient, experiencing a gain of over 7% and surpassing the $2,600 mark. This resilience highlights the demand for Ethereum and its ability to withstand market shocks, including large-scale sell-offs by entities like FTX.
While the liquidation may have temporarily intensified market volatility, the upward momentum of Ethereum has remained largely intact, supported by strong investor confidence and positive market fundamentals.
FTX’s Strategic Divestment
As part of its efforts to restructure during bankruptcy, FTX has chosen to divest its subsidiary, Digital Custody Inc (DCI), at a significantly reduced price compared to its initial purchase cost. The sale, facilitated through CoinList, was capped at $500,000, much lower than the $10 million FTX had originally paid for DCI in August 2022. This strategic move is part of FTX’s broader initiatives to streamline operations, minimize losses, and repay creditors following the collapse of Sam Bankman-Fried’s crypto empire.
Tags: Crypto news