A massive dump imminent as FTX intends to offload altcoins worth $4.6 billion

The aftermath of the FTX bankruptcy continues to affect the crypto industry, even though it occurred two months ago. The new CEO of FTX, John Ray, and his team are actively seeking liquid assets to compensate for customer losses. According to a report by Bitcoinist, they have been able to recover approximately $5 billion in cash, liquid cryptocurrency, and liquid investment securities. This information was shared by Andy Dietderich, an attorney representing FTX, during a court hearing in Delaware.

Is a Large Crypto Sell-Off Imminent?

What is drawing attention is the statement by Dietderich that FTX intends to dispose of non-core assets worth $4.6 billion, which could result in significant selling pressure in the cryptocurrency market. Dietderich also emphasized that the legal team is still working on creating accurate internal records, which may delay the sale. However, the liquidators may also proceed with the process in stages.

According to the FTX attorney, Andy Dietderich, the recovered funds do not include the assets that were seized by the Bahamas Securities and Exchange Commission. Dietderich estimates the value of these assets to be around $170 million, whereas Bahamian authorities have placed the value as high as $3.5 billion. Dietderich explained that the seized assets mainly consist of FTT tokens, which are illiquid.

Which Altcoins are most at risk?

Coinbase’s Conor Grogan is reviewing all of FTX’s wallets to identify the altcoins that the exchange still holds. According to Grogan, the largest crypto holding for FTX is Solana (SOL), which has a value of over $700 million. However, he notes that a majority of these coins are locked, so he is uncertain as to why they were included in the total. The other crypto assets held by FTX include $575 million in FTT, $371 million in MAPS, $127 million in OXY, $90 million in WBTC, $82 million in BONA, and approximately $500 million in various other Solana-based (SPL) tokens.

“My belief is that the estate wants a positive outcome and positive publicity to showcase the progress they’ve made,” said Grogan.

He also stated that in his opinion, the $5 billion figure is overly optimistic for what could be sold on the open market. However, he acknowledged that the $4.6 billion likely includes not just altcoins, but also shares of Robinhood, other stocks, and real estate. “400 million in Robinhood is a considerable number that is probably fairly valued. The rest… it’s hard to say,” said Grogan.

Additionally he communicated that while a significant portion of these assets may be fairly valued, it is difficult to say for certain. Additionally, an on-chain analysis service called “Lookonchain” has noted that the Alameda assets receiving wallet recently received 30 million USDC from “Alameda Research 25” and currently holds crypto assets worth $167 million, including various amounts of BIT, USDT, USDC, ETH, SUSHI, WXRP, RNDR, and SRM. At the time of this report, the price of Solana (SOL) was $16.27, having almost doubled since its low of $8.16 on December 29th.

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