Crypto Giants FTX and Alameda Research in $97M Sell-Off Frenzy: What’s Next for Investors?
The post Crypto Giants FTX and Alameda Research in $97M Sell-Off Frenzy: What’s Next for Investors? appeared first on Coinpedia Fintech News
Two bankrupt crypto firms FTX and Alameda Research have been actively liquidating their altcoin holdings as part of a debt repayment strategy. According to reports, wallets associated with FTX and Alameda Research have transferred a combined total of $97.35 million in assets for liquidation purposes over the past month.
FTX is selling its Solana (SOL) holdings to pay back customers, which raises concerns about more sell-offs in the coming days and increased market volatility.
FTX and Alameda Liquidation
According to blockchain analytics from Arkham Intelligence, wallets linked to FTX and Alameda Research have been actively liquidating assets. FTX’s liquidated holdings include approximately $33.85 million worth of BOBA and $11.22 million in ETH, alongside its dominant control over 78% of the FTT token supply.
On the other hand, Alameda Research a sister firm of FTX, holds substantial positions in various assets, including $140 million worth of WLD, $102 million in BIT, $93 million of BTC, and $48 million of STG. The scale of these holdings suggests the potential for further divestment by both companies.
Customer Compensation Plan
As part of the bankruptcy proceedings, FTX creditors whose claims amount to $50,000 or less are expected to receive approximately 118% of their allowed claim. The repayment plan indicates that around 98% of creditors will be compensated accordingly.
Meanwhile, other claimants will receive their 100% claims along with substantial interest to compensate for investment time value.
On the other hand, many creditors are concerned about the repayment plan, preferring crypto settlements due to asset valuation during the bear market in late 2022.
What’s Next?
FTX and Alameda Research have attracted attention due to recent asset liquidations, sparking concerns among creditors and investors in the crypto community. Meanwhile, FTX’s response to demands for crypto-based repayments is pending, adding to scrutiny over how crypto assets are handled in bankruptcy proceedings.
