Fear of FTX $3 Billion Sell-off Causes Market Panic
Market panic as big crypto company hints at selling $3 billion in assets. Prices of popular digital coins like Ethereum and Solana might be affected.
IntoTheBlock, an analytics company, warns that a bankrupt crypto company might cause big price drops.
FTX, used to be a crypto exchange and now has $3 billion in digital money. Many people think FTX will soon sell off this huge amount, causing prices to fall.
Lucas Outumuro from IntoTheBlock points out two cryptocurrencies: Ethereum (ETH) and Solana (SOL). These are crypto that FTX holds in higher quantity.
He said, “People might be selling their Ethereum and Solana because they think FTX will sell theirs soon. This makes the prices not to go up much because sellers want to sell before FTX, and not many buyers want to buy.”
Right now, the buying and selling seem balanced. But Outumuro thinks more big sellers will come this year, like the US government.
When this article was written, one Ethereum was $1,594 and one Solana was $17.86
