- FTX is planning to sell $4.6 billion worth of altcoins.
- This move hopes to make up for customer losses.
- The possibility of a massive crypto dump following this is high.
It looks like Sam Bankman-Fried’s FTX legacy of damaging the crypto market is still in play. Looks like the crippled crypto exchange is not done with wrecking the crypto market as it intends to sell altcoins worth $4.6 billion.
From FTX’s latest possible decision to sell altcoins worth $4.6 billion, it seems the crypto market could be heading towards another massive dump. The crypto market is right to be concerned over FTX’s plan to sell this massive value of altcoins.
The decision to consider this event comes from the new CEO of FTX John Ray. Presently, the FTX team is hoping to repair damages made towards their customers. Hence, they believe that by selling these altcoins they can make up for the customer losses so far.
Presently, FTX has only recovered around $5 billion in assets. An FTX attorney confirmed this. In particular, attorney Andy Dietrich says they found over $5 billion in cash, liquid investment securities, and liquid cryptocurrency.
Granted, FTX has had a hard few months. It is commendable to see how the exchange is doing its best to recover and support its customers along the way. Still, it would be a hard road to recovery if the exchange continues to harm the crypto market as a whole during its attempt to attain redemption.
FTX used $200 million of its client funds for two separate venture investments. Meanwhile, a Bahamas regulator holds $3.5 billion in FTX user assets. Indeed, making it up to their customers is not going to be an easy task.
Currently, the crypto market sentiment is at 30 showing a gradual rise over the last month. With the arrow still pointing at ‘fear’, we can only hope FTX’s next move will not drag the market back down to ‘extreme fear’.
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