• FTX’s bankruptcy occurred two months ago, and the issue is still ongoing.
• New CEO John Ray and his team have recovered $5 billion in liquid assets.
• FTX plans to dump non-strategic holdings with a book value of $4.6 billion, which could lead to tremendous selling pressure in the crypto market.
The crypto industry is still dealing with the aftermath of the FTX bankruptcy, which happened two months ago. FTX’s new CEO, John Ray, and his team have been working hard to recover as many liquid assets as possible. They have managed to locate over $5 billion in cash, liquid cryptocurrency, and liquid investment securities. This does not include the assets seized by the Bahamas Securities and Exchange Commission, which are estimated to be worth between $170 million and $3.5 billion, mostly consisting of illiquid FTT tokens.
Coinbase director Conor Grogan has been looking through all wallets to identify which altcoins could be hit the hardest by the asset sale. He believes that some tokens could be sold at a discounted price due to their illiquidity and lack of demand. This could cause a massive sell-off, which could have a huge impact on the crypto market in general.
In addition, the legal team is still working to create accurate internal records, so the sale could be delayed. Even so, the sale is expected to have a major effect on the crypto market and could potentially cause a massive dump of some altcoins. Only time will tell what the full impact will be, but it’s clear that investors should be prepared for some volatility in the near future.