Benzinga - The crypto market is expected to remain stable despite the sale of tokens by bankrupt exchange FTX (CRYPTO: FTT), as Coinbase Inc. (NASDAQ: COIN) reports protective measures capping initial sales at $50 million per week, increasing to $100 million in subsequent weeks.
Any decision to permanently raise this cap to $200 million weekly would require the green light from committees representing FTX's debtors.
In the context of the evolving digital asset landscape, such developments highlight the importance of industry events like Benzinga's Future of Digital Assets conference on Nov. 14. Such platforms provide insights and discussions on the latest trends and challenges in the crypto world.
FTX's current holdings, as revealed in a recent court document, include approximately $1.16 billion in Solana (CRYPTO: SOL), $560 million in Bitcoin (CRYPTO: BTC), $192 million in Ether (CRYPTO: ETH), and an additional $1.49 billion in various other tokens, Coindesk reported.
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Following a court decision, FTX has been granted permission to liquidate and reinvest these assets to settle its debts with creditors.
David Duong, the head of institutional research at Coinbase, emphasized the stringent regulations governing the sale of specific "insider-affiliated" tokens.
Such sales mandate a 10-day prior notification to the committees above.
Furthermore, due to the token's vesting schedule, a significant portion of FTX's Solana tokens remains inaccessible until 2025.
The report also mentioned that, upon securing committee consent, FTX can strategically hedge its sales of Bitcoin, Ether, and other tokens with the assistance of an investment adviser.
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