FTX Crypto Asset Sales Will Not Crash The Market: Coinbase Report

Crypto News
Crypto News

18 Sep 2023 2:02 PM

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.

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You May Ask

How will the potential liquidation of FTX's crypto holdings affect the market?What are the volume limits for the liquidation process?What approvals are required for the liquidation?Which tokens require 10 days advance notice for selling?What assets does FTX hold and how much are they worth?

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