Selling pressure on Solana (Sol) increased as FTX received court approval to sell its crypto assets.
FTX was a popular crypto exchange ranked second in the crypto market before November 2022. After a report from the Coindesk media about the financial position of the FTX exchange and its sister firm Alameda Research, FTX customers distanced themselves from this crypto platform with the funds. On November 11, 2022, FTX, along with more than 120 subsidiaries, filed for Chapter 11 bankruptcy.
On September 13, 2023, During the hearing hearingJudge John Dorsey approved authorizing the FTX bankruptcy team to use the FTX’s current holding assets.
In August this year, FTX filed a request with the court for this approval so that the exchange could explore a better approach to compensating customers.
Two parties opposed this FTX’s decision and wanted to keep the funds frozen, but the FTX bankruptcy team said that involvement with the holding funds would help the FTX team put the funds into use so that downside risks could be reduced to the in favor of the FTX. FTX accounts receivable.
FTX currently owns $3.4 billion in crypto assets, of which $1.16 billion is solely Solana (sol) coins. It is worth knowing that it is still not confirmed that these funds belong to any party, be it an FTX company or customers. The judge also asked whether the funds belonged to the FTX company or to customers.
The FTX representative’s attorneys said the funds were in an untraceable pool, so FTX considered these funds to be owned by all FTX debtors.
Solana Pressure on the Crypto Market
Notably, the majority of digital assets are owned by Solana (Sol). $1.16 billion worth of Sol coins represents almost 16%+ of the total Sol coin supply. If FTX starts selling Crypto assets, it will definitely create a huge panic selling pressure in the crypto market.
In recent days, the majority of people were afraid of what would happen if FTX sold these assets, but in today’s time, the majority of people are considering that FTX could choose a different path to use these funds, to risk factors away, but if FTX chooses the sell path, they will sell $200 million worth of crypto assets per week.
FTX representatives also asked the court for regulatory approval to hire Galaxy Digital’s Mike Novogratz as an advisor to the FTX exchange so he can help manage the funds.
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