It has been claimed that the $3.4 billion cryptocurrency liquidation to be carried out by the bankrupt cryptocurrency exchange FTX will not have a shock effect on the market.
In a research report published by Coinbase, the largest cryptocurrency exchange in the USA, on September 14, it was stated that FTX is expected to be realized in the near future. $3.4 billion worth of cryptocurrency liquidation will not cause a market shock was expressed. Coinbase bases this thesis on various highlight mitigating circumstances lasted.
In the report, liquidation to various limits Expressions were made that the limits were available and therefore the limits could be met by the market. According to the information given, FTX liquidation limits are weekly at the first stage. 50 million dollars and weekly thereafter 100 million dollars was considered as. After this limit for 200 million dollars It was stated that it could be removed.
As another mitigating factor, Coinbase “insider linked” on the sale of tokens strict controls He stated that it would happen. And also Solana (LEFT) The tokens that make up a large portion of FTX assets, such as 2025 The fact that it was locked until 2018 was also cited by the stock market as one of the reasons that would dampen the effects of the FTX liquidation.
Coinbase’s possible market shock The last reason he claimed to prevent FTX from being liquidated Bitcoin (BTC), Ethereum (ETH) and the possibility of hedging some other assets was available.
FTX was placed for liquidation at a hearing in the US Bankruptcy Court for the District of Delaware last week. official approval had taken it.