FTX's cryptocurrency holdings have been revealed, triggering concerns over liquidation and causing a short-term price drop in the crypto market.
Dive into the specifics of their $3.4 billion in assets and what this means for the future of cryptocurrencies.
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FTX Holds $3.4 Billion in Cryptocurrency Assets
The defunct cryptocurrency exchange FTX has been revealed to hold a variety of cryptocurrencies including "SOL, BTC, ETH, APT, USDT, XRP, BIT, STG, WBTC, WETH."
According to documents submitted to the court on September 11, 2023, FTX holds cryptocurrency assets valued at $3.4 billion as of August 31, 2023.
This is in addition to the $1.1 billion they held as of November 11, and the $1.5 billion in cash they have secured.
The top 10 liquid cryptocurrencies held by FTX are as follows. Besides these, FTX also holds over 1,300 other types of cryptocurrencies, including those with low recognition and liquidity.
| Cryptocurrency | Value |
|---|---|
| SOL | $1.162 Billion |
| BTC | $560 Million |
| ETH | $192 Million |
| APT | $137 Million |
| USDT | $120 Million |
| XRP | $119 Million |
| BIT | $49 Million |
| STG | $46 Million |
| WBTC | $41 Million |
| WETH | $37 Million |
In addition to cryptocurrencies, FTX also holds assets like "cash, broker investments, venture portfolios, and real estate," bringing their total assets to over $7 billion.
Concerns Over Selling Pressure Lead to Temporary Price Decline
The disclosure of FTX's holdings led to a sharp decline in the prices of various cryptocurrencies, including BTC, due to concerns over selling pressure.
However, a rebound was observed in many assets on the 12th, with BTC recovering to its pre-drop price near $26,000.
Special Concerns Surrounding Solana (SOL)
Solana (SOL), which has the highest holding, is particularly concerning in terms of selling pressure.
However, it has been pointed out that "a large portion of this SOL is locked up until 2027, limiting the actual sellable amount to around $500 million."
For cryptocurrencies with low liquidity, there is also an opinion that "their value could become almost worthless if FTX's holdings are sold."
The court's decision on FTX's asset liquidation is expected to be made on September 13, 2023.
Even if approved, the assets won't be immediately sold, so the actual liquidation could take some time.