- The crypto market plunged after reports that FTX could liquidate $3.4 billion in crypto.
- A court hearing is scheduled tomorrow to discuss the sale of the crypto assets.
- Some crypto influencers believe the liquidation is FUD and that nothing significant will happen.
The crypto market plugged into a deeper bearish trend after revelations that the bankrupt FTX exchange could liquidate billions of dollars worth of crypto assets. Specifically, a recent report from Bloomberg revealed that administrators overseeing FTX’s assets have recovered approximately $7 billion.
Out of the recovered lump sum, $3.4 billion is comprisedof cryptocurrencies. The report highlighted that a crucial court hearing is scheduled tomorrow on a comprehensive plan to initiate the sale of the tokens to facilitate the repayment of creditors waiting for a resolution to their claims.
In response, some prominent crypto influencers have taken to their social media channels to alert the crypto community of the impending dump. In a tweet, Crypto Rover shared a breakdown of the funds FTX is expected to liquidate.
According to Rover’s tweet, the largest portion of the digital assets set for liquidation is to Solana (SOL), with an estimated value of $685,000,000. Additionally, the influential figure pointed out that FTX has proposed selling $200 million worth of cryptocurrencies every week.
However, other renowned crypto market participants have dismissed the FTX’s planned liquidation as FUD. In particular, X user MartyParty pointed out that many crypto YouTubers have capitalized on the FTX speculation to generate fear, uncertainty, and doubt (FUD). According to him, they merely used the event to drive clicks to their content.
Moreover, MartyParty contended that nothing significant would transpire regarding the matter. He claimed that the FTX alleged sale is probably being managed over-the-counter (OTC) between exchanges to minimize market impact.
MartyParty believes all the hype that has ensued due to the FTX development is unwarranted. He promised to call out all the influencers who created FUD content about the FTX news when the matter becomes clearer later in the month.