As FTX gets green light to liquidate, here's how top cryptos reacted
AMBCrypto -
  • FTX can now sell up to $200 million worth of its assets weekly, according to a recent ruling.
  • Solana, Bitcoin, and Ethereum were the largest digital assets held by the exchange.

There has been speculation throughout the week regarding the impending FTX ruling, which could grant the defunct exchange the authority to liquidate its digital assets. On 14 September, the ruling was finally issued in favor of the defunct exchange, permitting the sale of these assets. How has this recent development impacted the assets held by FTX?

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FTX gains permission to sell

Recent reports and court documents indicated that FTX has been granted permission to liquidate its digital assets in order to settle its creditors. Judge John Dorsey at the U.S. Bankruptcy Court for the District of Delaware issued a ruling allowing the defunct exchange to sell assets valued at over $3 billion, including Solana [SOL], Bitcoin [BTC], and Ethereum [ETH].

Furthermore, according to this ruling, the exchange can initiate the sale of $50 million worth of digital assets in the first week, with the possibility of increasing this limit to $100 million subsequently. Moreover, the court has the authority to further raise the weekly limit to $200 million if necessary.

Additionally, it’s important to note that the sales of Bitcoin, Ethereum, stablecoins, and the redemption of stablecoins will not be counted towards the $100 million weekly limit, as clarified in a footnote on the order. Furthermore, transactions involving bridging tokens from non-native blockchains back to their native networks will also be excluded from the calculation of the limit.

Why has the FTX sell-off created a fuzz around Solana?

Solana has faced considerable challenges following the FTX crash. An analysis of the exchange’s digital asset holdings revealed that its largest holding was in Solana.

At present, the defunct exchange possesses approximately $1.6 billion worth of Solana, constituting one-third of its total holdings and approximately 10% of the total SOL supply.

The substantial volume of Solana held by FTX, coupled with the percentage of the total supply it represented, has contributed to increased fear, uncertainty, and doubt (FUD) surrounding SOL as news of the impending sales spread. 

In addition to Solana, the next most significant holding in FTX’s portfolio was Bitcoin, with assets valued at over $560 million. Ethereum was ranked as the third-largest holding, with approximately $196 million worth of ETH currently in the exchange’s possession.

For both Bitcoin and Ethereum, the percentage of these assets held by FTX amounted to less than 1% of their respective total supplies.

How the top-held assets reacted to the ruling

When examined on a daily timeframe, it showed that the recent FTX ruling has not had a noticeable impact on Bitcoin’s trend. In fact, BTC was currently experiencing its third consecutive daily uptrend.

As of this writing, its price was over $26,300, reflecting a modest increase of less than 1%. This incremental rise has contributed to an overall increase of over 4% in the past three days.

Source: TradingView

Similarly, Ethereum (ETH) exhibited a comparable pattern, with a three-day uptrend. Its current trading price hovered around $1,619, showing a slight increase of less than 1%. Over the past three days, ETH has seen its value rise by more than 4%.

Source: TradingView

Despite the uncertainty surrounding Solana due to the FTX situation, its price trend remained unaffected. Like ETH and BTC, SOL has also been on an uptrend for the last three days.

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As of this writing, it was trading at approximately $18.8, reflecting a more significant increase of over 2%. In the past three days, SOL has enjoyed an impressive 6% increase in value.

Source: TradingView

It’s important to note that the dynamics of these asset price trends may change when the sales of digital assets by FTX commence. However, as of now, they are all exhibiting positive trends.

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