Reasons Why FTX’s Mass Token Liquidation Is Unlikely to Cause Market Shocks: Report
CryptoPotato
18 Sep 2023 5:49 PM
Duong revealed that the liquidations are bound by weekly sell limits of $50 million across crypto assets in the initial phase....
- Coinbase's research report suggests that the forthcoming mass token liquidation by FTX is unlikely to cause market shocks.
- FTX has received approval to sell its crypto assets worth $3.4 billion, including SOL, BTC, ETH, APT, and other tokens.
- The liquidations are bound by weekly sell limits, starting at $50 million and potentially increasing to $200 million.
- Strict controls are in place for selling insider-affiliated tokens, with a ten-day advance notice required.
- FTX can hedge its sales of debtor-identified assets through an investment advisor.
- A significant portion of FTX's SOL holdings will remain locked until 2025.
The sentiment of the article is generally positive, as it suggests that the liquidation by FTX is unlikely to cause market shocks and highlights factors that mitigate risks.
You May Ask
What is the value of FTX's crypto assets approved for liquidation?What are the weekly sell limits for the liquidations?How can FTX hedge its sales of debtor-identified assets?When will a significant portion of FTX's SOL holdings be unlocked?What are the factors that Coinbase's research report suggests will mitigate the risks of market shocks?