Bankrupt crypto exchange FTX is shedding massive amounts of ETH and JSOL. The sell-off comes amid the recent crypto market boom. Meanwhile, despite the sell-off, the ETH and JSOL price rally continued. The update comes after the agency decided to sell its $10 million DCI for $500,000.
‘FTX divests ETH and JSOL’
Bankrupt crypto exchange FTX is liquidating millions worth of crypto assets to speed up the liquidation process. cryptokoin.comAs you follow from , the sell-off comes amid the recent crypto market boom, where Bitcoin (BTC), Ethereum (ETH), and other top cryptocurrencies have seen a significant rise. However, the massive liquidation increased market outflows. It is possible that this could be a catalyst in stopping the market rally.
According to on-chain data tracker Peck Shield Alert, the FTX cold wallet address recently transferred 50,000 JPool Staked Solana (JSOL) tokens to an unknown wallet. This transaction was valued at approximately $6.6 million. Additionally, FTX shifted 542 ETH to Wintermute, a crypto market maker. This amount corresponds to approximately 1.36 million dollars.
The sales did not have a significant impact on the price of ETH and JSOL
Additionally, PeckShield reported an internal transfer of Alameda, FTX’s sister crypto trading platform, in another transaction. The transfer involved moving 10,700 ETH, equivalent to $26.8 million, between Alameda’s two wallets. It is possible that this is a step for Alameda to empty the ETH reserves it holds.
FTX’s latest ETH liquidation comes amid the token’s massive rally to over $2,600. Thus, Ethereum increased its outflows for the day. However, ETH continues to trade with gains of over 5% in the last 24 hours. Therefore, the sell-off was not large enough to stop Ethereum’s gains today. According to Coinglass data, over $44 million in long and short positions have been liquidated on Ethereum in the last 24 hours, including FTX sales. Liquidation was important enough. However, it did not affect ETH’s momentum. On the other hand, JSOL price reached new highs despite the FTX sell-off. During this period, it increased by approximately 10% to $132.06.
Digital Storage Unit Will Be Closed for 500 Thousand Dollars
FTX chose to sell a previously acquired subsidiary, Digital Custody Inc (DCI), at a significantly lower price than its initial acquisition. Sales on CoinList, a tokenized platform, are set at a maximum of $500,000, in stark contrast to the $10 million the exchange paid for DCI in August 2022. This strategic move is part of FTX’s efforts to divest its assets and pay off its debt.
The decision to sell DCI is part of the bankrupt crypto exchange’s effort to prevent further losses. It also stems from an attempt to streamline operational expenses. Furthermore, it was determined that integrating DCI for custody services, particularly for FTX.US and LedgerX, into FTX’s operations was no longer feasible.
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