will not result in a market shock due to several mitigating factors, Coinbase said in a research report Thursday.won’t flood the market because liquidations are limited to $50 million per week in the first phase and then increase to $100 million in the following weeks, the report said. Coinbase notes that committees representing FTX debtors need to approve a permanent increase to a maximum of $200 million a week., the crypto exchange holds about $1.
Additionally, there are “strict controls in place for selling certain ‘insider-affiliated’ tokens that require 10 days advance notice to these same committees,” wrote David Duong, head of institutional research. A large part of FTX's solana holdings are locked up until 2025 as part of the token’s vesting schedule, as are some other tokens that need to be sold, the note said.
Lastly, FTX will be able to hedge its sales of bitcoin, ether and other tokens through an investment adviser once it has received committee approval, the report added.