Altcoin Prices Cannot Fall with FTX Sales!

Recently, there have been some concerns in the market due to the collapse of the FTX cryptocurrency exchange and liquidation transactions. The statements made by Coinbase’s head of institutional research, David Duong, provide some relief, especially for altcoin investors. According to Duong, the altcoins that will be available during liquidation transactions will not overwhelm the market. So, what details does the Coinbase report contain and what effects might it have on the altcoin market?

Is the altcoin market safe?

Following the collapse of FTX, the liquidation process of the large amounts of altcoins it held is being closely monitored. Among the most important cryptocurrencies that attract attention in this process are Solana (SOL) worth $ 1.162 billion, Bitcoin (BTC) worth $ 560 million and Ethereum (ETH) worth $ 192 million. There are other altcoin projects worth a total of $1.49 billion in the stock market’s ready-for-sale reserves.

Duong states that FTX will have a weekly sales limit of $50 million during its sales. This limit will be doubled from the first weeks, reaching up to 100 million dollars. This type of limitation prevents sudden declines, especially in the altcoin market. David Duong adds that most of the Solana (SOL) reserves will be locked by 2025. This will prevent the altcoin in question from showing a sudden increase in the market.

How will sales occur?

During liquidation transactions, some strict rules have been introduced for FTX to sell some special tokens called insider-affiliated tokens. Before the sale of these altcoins, relevant committees must be informed within a period of 10 days. This stands out as another important detail that protects the altcoin market.

Duong also states that FTX may transact through an investment advisor to hedge its cryptocurrencies during the sale process, and that it must obtain prior committee approval for this.

At the macro level, Duong said that he expects the US Federal Reserve to loosen monetary policy in the first or second quarter of 2024, emphasizing that this situation could be quite supportive for Bitcoin. In conclusion, Coinbase’s latest report reveals that FTX’s sell-offs do not pose a threat to the altcoin market. However, market fluctuations always require investors to be careful. It is of great importance for investors to be careful and conscious in their altcoin investments.

These altcoin investors breathed a sigh of relief

cryptokoin.com As we reported, the US court approved FTX’s altcoin sales this month. According to reports, the exchange has high volumes of cryptocurrencies such as SOL, ETH and BTC in its reserves. While Duong is confident that the sales will not cause a decline, the exchange’s altcoin reserves are as follows:

  1. Solana (SOL): $685 million (locked)
  2. FTX Token (FTT): $529 million
  3. Bitcoin (BTC): $268 million
  4. Ethereum (ETH): $90 million
  5. Aptos (APT): $67 million
  6. Dogecoin (DOGE): $42 million
  7. Polygon (MATIC): $39 million
  8. BitTorrent (BIT): $35 million
  9. Toncoin (TON): $31 million
  10. XRP (XRP): $29 million

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