Coinbase Downplays Impact of FTX Liquidation Sales on Market

According to a recent research report by Coinbase (COIN), the sale of tokens by the bankrupt crypto exchange FTX is not anticipated to create significant market disruption. The report highlights that token liquidations are subject to controlled limits, starting at $50 million per week initially and gradually escalating to $100 million in subsequent weeks. Approval from committees representing FTX debtors is required for a potential permanent increase to a maximum of $200 million per week. In a recent court filing, it was revealed that the crypto exchange FTX holds a substantial cryptocurrency portfolio. 

Coinbase: FTX's Liquidation Sales Won't Disrupt Market

FTX holds roughly $1.16 billion in Solana (SOL), $560 million in Bitcoin (BTC), $192 million in Ethereum (ETH), and an extra $1.49 billion in assorted tokens. Significantly, the court ruled last week that FTX is now permitted to liquidate and reinvest these cryptocurrency holdings to repay its creditors. This decision marks a crucial step in the bankruptcy proceedings of the exchange.

The diverse nature of FTX's cryptocurrency assets, including holdings in Solana, Bitcoin, Ethereum, and various other tokens, underscores the complexity of the exchange's financial situation.

The court's decision to allow FTX to access and utilize these assets provides a path forward for the exchange to meet its financial obligations and address the claims of its creditors.