FTX Crypto Asset Sales Will Not Crash The Market: Coinbase Report
Digital asset exchange, Coinbase has said in a new report that a potential liquidation of FTX’s crypto holdings will not negatively affect the market....
- Coinbase has stated in a report that the potential liquidation of FTX's crypto holdings will not have a negative impact on the market.
- The liquidation is expected to be regulated with volume limits, starting at $50 million per week and increasing to $100 million per week.
- Approval from FTX debtors and committees is required for a permanent $200 million per week liquidation.
- Strict controls are in place for selling certain tokens affiliated with insiders, requiring 10 days advance notice to committees.
- FTX can enter into digital asset hedging contracts restricted to Bitcoin and Ethereum, with approval needed for other coins.
- Periodic reports on balances, trades, sales, yields, market insights, and revenue sources will be provided.
- FTX holds about $7 billion in assets, including cryptocurrencies, investments, and properties.
- Experts speculated that the sale would impact the market, leading to calls for community support and potential bids for assets.
- The price of Solana (SOL) dropped 6% due to fears of a massive FTX liquidation.
The sentiment of the article is neutral, providing information about the potential impact of FTX's liquidation on the market.