Reasons Why FTX’s Mass Token Liquidation Is Unlikely to Cause Market Shocks: Report

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Duong revealed that the liquidations are bound by weekly sell limits of $50 million across crypto assets in the initial phase.

A weekly market report by America’s largest cryptocurrency exchange, Coinbase, has outlined several reasons why the forthcoming mass token liquidation by its bankrupt rival FTX is unlikely to cause market shocks in the ecosystem.that analysts at the exchange found some factors that should mitigate the risks of market shocks when the assets are eventually sold.On September 13, Judge John Dorsey of the U.S.

The exchange’s request received support from the official creditors’ committee and the ad hoc committee of non-US customers as they saw the importance of de-risking the firm’s token portfolio and liquidating its holdings to maximize value for users. Explaining why FTX’s plans are unlikely to cause market shocks, With time, the committees representing FTX debtors would increase the value to $100 million and then a maximum limit of $200 million.

 

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