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Coinbase Report: FTX’s sale of cryptocurrency holdings unlikely to severely impact the market

18/09 16:50
Odaily Planet Daily News Coinbase said in a research report that due to the existence of several mitigating factors, FTX's sale of its cryptocurrency holdings will not have a serious impact on the market. First, the token sale will not suddenly bring huge selling pressure to the market, as the liquidation limit in the first phase is only $50 million per week, and then increases to $100 million in the following weeks, the report said. Coinbase noted that the committee representing FTX debtors would need approval to permanently increase trading volumes to a maximum of $200 million per week. In addition, David Duong, director of institutional research, wrote that FTX has strict controls on certain token sales that are “internally related” and needs to notify the committee 10 days in advance. As part of the token vesting plan, a significant portion of FTX’s SOL holdings will be locked up until 2025, as will a number of other tokens that need to be sold. Finally, the report added that once approved by the committee, FTX will be able to hedge its sales of BTC, ETH and other tokens through investment advisors. (CoinDesk)