- According to a recent ruling, FTX can now sell up to $200 million in assets every week.
- Solana, Bitcoin and Ethereum were the exchange’s largest digital assets.
There has been speculation all week about the upcoming FTX ruling, which could give the defunct exchange the power to liquidate its digital assets. On September 14, the ruling was finally made in favor of the defunct exchange, allowing the sale of these assets. How will this recent development impact FTX’s assets?
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FTX gets permission to sell
Recent reports and court documents indicated that FTX has been allowed to liquidate its digital assets to settle its creditors. Judge John Dorsey of the U.S. Bankruptcy Court for the District of Delaware issued a ruling allowing the defunct exchange to sell assets worth more than $3 billion, including Solana [SOL]Bitcoin [BTC]and Ethereum [ETH].
Further according to this pronunciationthe exchange can start selling $50 million worth of digital assets in the first week, with the option to subsequently increase this limit to $100 million. In addition, the court has the authority to further increase the weekly limit to $200 million if necessary.
Additionally, it is important to note that sales of Bitcoin, Ethereum, stablecoins, and stablecoin redemptions will not count toward the $100 million weekly limit, as clarified in a footnote to the order. Additionally, transactions that bridge tokens from non-native blockchains back to their native networks will also be excluded from the limit calculation.
Why has the FTX sell-off created a buzz around Solana?
Solana has faced significant challenges following the FTX crash. An analysis of the exchange’s digital assets showed that the largest holding was in Solana.
Currently, the defunct exchange owns about $1.6 billion worth of Solana, which makes up a third of its total holdings and about 10% of its total SOL supply.
The significant volume of Solana held by FTX, coupled with the percentage of total supply it represented, has contributed to the increased fear, uncertainty and doubt (FUD) surrounding SOL as news of the impending selloff spread.
Besides Solana, Bitcoin was the next most important holding in FTX’s portfolio, with assets worth over $560 million. Ethereum was ranked as the third largest holding, with approximately $196 million worth of ETH currently held by the exchange.
For both Bitcoin and Ethereum, the percentage of these assets held by FTX was less than 1% of their respective total supply.
How key assets responded to the ruling
Daily research showed that the recent FTX ruling has not had a noticeable impact on Bitcoin’s trend. In fact, BTC is currently experiencing its third consecutive daily uptrend.
At the time of writing, the price was over $26,300, reflecting a modest increase of less than 1%. This incremental increase has contributed to an overall increase of more than 4% over the past three days.
Source: TradingView
Similarly, Ethereum (ETH) showed a similar pattern, with a three-day uptrend. The current trading price has been hovering around $1,619, showing a slight upside of less than 1%. Over the past three days, ETH has seen its value increase by more than 4%.
Source: TradingView
Despite the uncertainty surrounding Solana due to the FTX situation, price development remained unaffected. Like ETH and BTC, SOL is also in an uptrend for the past three days.
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At the time of writing, the stock was trading at around $18.8, reflecting a more significant increase of over 2%. In the last three days, SOL has seen an impressive 6% increase in value.
Source: TradingView
It is important to note that the dynamics of these asset price trends may change when FTX’s digital asset sales begin. However, as of now, they are all showing positive trends.
