Image courtesy of Justin Sun’s Twitter.
- Justin Sun has revealed plans to buy up FTX’s holding tokens so as to relieve the market of the selling pressure.
- Investors have been dumping ahead of a possible approval for FTX to liquidate its holding tokens later this week.
Tron founder Justin Sun has revealed his plans to save the crypto market from a possible price bloodbath. FTX bankruptcy filings have recently revealed that the collapsed exchange seeks to liquidate its holding tokens. With a court approval likely to be granted on September 13th, investors are concerned that billions worth of assets will be dumped on the market.
An updated FTX asset report shows that the exchange holds around $3.4 billion worth of assets. The biggest holding asset is Solana (SOL) worth around $1.16 billion. Bitcoin (BTC) is a little over $500 million and nearly $192 million in Ethereum (ETH). As for Tron (TRX), the stash accounts for 12 percent of the total, around $33 million.
Market experts have been quick to stop ongoing fear, uncertainty, and doubt (FUD) that the exchange will dump all the assets upon approval. Contrary, the exchange will not flood the market with all the assets. There will be a structured framework to sell these tokens, such as $200m a week. In the case of SOL, the tokens are locked for years, OTC buyers will get FTX’s vesting contract. Additionally, a majority of tokens will not be sold on the open market but will be sold on OTC or gradually via market makers.
It is unlikely that Sun would be able to buy the whole stash but his efforts will help shield the market from a plunge. This will go a long way to ensuring market stability during a potentially turbulent phase. Sun will likely buy the TRX stash first before making an offer for the rest of the tokens.
Contemplating an offer for FTX’s holding tokens and assets to reduce their selling impact on the crypto community. Let’s unite to bolster our crypto ecosystem!🙏
— H.E. Justin Sun 孙宇晨 (@justinsuntron) September 11, 2023
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Crypto Market Reaction to FTX Liquidation
Since the reports of the liquidation emerged, the crypto market has entered into a bearish trend. In the last 7 days, SOL which has been the greatest loser has lost nearly 7 percent. However, the altcoin has begun the week stronger, marking a marginal positive gain.
TRX has responded positively to the news of its founder saving the market and has recorded a 2 percent gain in the last 24 hours.
With much of the uncertainty now addressed, investors are now more confident and have stopped dumping their stash on fears that the market will be flooded. As a result, the market is showing signs of revival with a majority of cryptocurrencies trading in the green. If the market can sustain the positive momentum, altcoins can climb back above key supports breached during liquidation woes.
Noteworthy, on top of its crypto stash, FTX and its executives own 38 properties in the Bahamas which were all appraised at $199 million.
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