On Saturday, September 9th, the crypto community was rattled by a rumor of potential large sell-off pressure from FTX in the second week of September 2023.
The concern stems from the struggling crypto exchange FTX, which is likely to receive approval to liquidate some of its $3.4 billion in crypto assets, intending to sell up to $200 million per week, starting on September 13th.
Prices of crypto assets began to drop on Sunday, September 10th, with speculations that FTX could sell around $136 million worth of native Solana (SOL) tokens, even though they hold a larger amount that’s locked until 2025-2028.
The rumor gained momentum after FTX’s crypto wallet showed activity on September 3rd, moving over $10 million from Solana to Ethereum, sparking concerns of an impending crypto asset sell-off amid the bankruptcy process.
FTX had previously proposed a plan to appoint Galaxy Digital as an investment manager to oversee crypto asset sales, with limits of $100 million per week, possibly increasing to $200 million, to minimize the impact on crypto asset prices and creditors.
FTX aims to recover from its financial turmoil and potentially launch a new crypto exchange by Q2 2024. Meanwhile, Sam Bankman-Fried, the face of FTX Group, remains in jail facing various charges, including securities and wire fraud, with his trial set for October.
