Justin Sun Considers Making a Bid for FTX Crypto Assets
In a surprising turn of events, Justin Sun, the Founder of Tron and Advisor to Huobi Global, has expressed interest in acquiring FTX’s substantial crypto assets valued at billions of dollars.
Tron Founder Interested in Acquiring FTX Assets
Justin Sun, the Creator of Tron, one of the world’s largest blockchain ecosystems, has hinted at the possibility of acquiring the assets of insolvent crypto exchange FTX. This statement comes a year after the crypto billionaire considered a majority takeover of Huobi Global.
According to data from Messari, an industry intelligence provider, FTX’s liquidations hold a total of $1.3 billion in liquid crypto assets, excluding stablecoins. The report highlights some of the major holdings of FTX liquidators, including Solana (SOL), Ethereum (ETH), Aptos (APT), Dogecoin (DOGE), Tron (TRX), and Polygon (MATIC).
Given the significant holdings, concerns have arisen about a potential market crash if the exchange were to begin dumping its crypto assets. In response to this, Sun revealed in a post on X (formerly known as Twitter) that he is considering the possibility of purchasing FTX holdings.
Quoting Sun, “Contemplating an offer for FTX’s holding tokens and assets to reduce their selling impact on the crypto community. Let’s unite to bolster our crypto ecosystem.”
However, data from Messari indicates that FTX and Alameda’s BTC holdings, approximately $353 million, account for only 1% of BTC’s weekly trading volume, suggesting that the crypto market can easily handle any selling impact. On the other hand, FTX’s holdings such as DOGE, TRX, and MATIC, ranging from $20 million to $30 million, account for 6-12% of weekly trading volumes, and liquidations could significantly impact the crypto market.
Most of FTX’s SOL tokens are locked up in Alameda and FTX ventures, allowing only $9.2 million SOL to be unlocked every month. This monthly liquidation system helps in managing the selling impact of FTX’s Solana holdings.
FTX Insolvency Court Case Still Ongoing
On November 11, 2022, FTX and its affiliates filed for bankruptcy in Delaware, United States. At the time, the exchange owed a staggering $8 billion after facing a liquidity crisis.
The crypto exchange is currently under investigation by the United States Securities and Exchange Commission (SEC), while its Founder and CEO, Sam Bankman Fried, was charged with 13 accounts for alleged illegal proceedings in FTX. However, five of these charges were later withdrawn in June.
FTX liquidators have a scheduled hearing on Wednesday, September 13. The outcome of the hearing may determine whether the liquidators can initiate asset liquidations immediately.
According to a recent court filing, the bankrupt crypto exchange still holds assets worth $7 billion, including digital assets, venture investments, and reclaimed properties.
Image source: Watcher Guru, Chart source: Tradingview.com
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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