If there’s one particularly grim story in crypto’s not-so-long history, FTX’s bankruptcy must be among those competing for that spot.
The exchange’s downfall is likely even to get televised as one of the most scandalous catastrophes in modern financial times.
That said, according to a recent court ruling, FTX now has approval to dump its cryptocurrency holdings in a bid to make creditors whole. This has been one of the headlines of the week. Note that the exchange is now run by a team that’s completely unrelated to Sam Bankman-Fried, and its sole purpose is to make creditors as whole as possible.
The exchange has a lot of crypto. According to a recent report by CoinGecko, this is what their holdings look like:
Apparently, there’s almost $120 million worth of XRP available for FTX to dump on the market at a time they find convenient. If that were to happen today, it would surely have a great impact on the price, given the current market depth.
This news has also suppressed the price of other cryptocurrencies, such as Solana (SOL). Some have even predicted that ETH could crash to $1,000 if FTX were to dispose of all of its holdings at once.
Of course, it’s unlikely that the team managing the liquidation process is going to proceed this way, as it would cause substantial damage to both the market and the creditors.