- The crypto market has been declining in recent months, with Bitcoin down by 62.59% from its all-time high.
- Altcoins have been hit even harder than Bitcoin, with some coins down by over 90% from their all-time highs.
- FTX is planning to sell $200 million worth of crypto per week.
- This could lead to a further decline in the price of altcoins, as it will increase the supply of crypto in the market.
- Some altcoins, such as ApeCoin, GALA and Axie Infinity, are particularly vulnerable to this sell-off.
The crypto market hasn’t been kind over the last two years or so.
Bitcoin, for example, has been hit pretty badly since its price started to decline in November 2021.
According to CoinMarketCap, Bitcoin has even declined by 62.59% from its $68,789 high.
Which is bad.
However, if we look at things from another angle, altcoins are always the worst-hit cryptocurrencies in market dips.
Take Solana for example, which crashed 92.38% from ATH, or Cardano which crashed 91.73%.
And as it turns out, there might be even more doom and gloom incoming for altcoins very soon.
Here’s what we know:
$3.4B Altcoin Purge Is Looming – Matrixport
In a recent tweet published by Matrixport, a digital assets platform, some altcoins might suffer soon in terms of price.
In an attached report, Matrixport mentioned that FTX currently holds $3.4 billion in crypto, according to a document filed in court earlier this year.
However, in a more recent filing from last week, FTX stated that it was prepared to sell $200 million worth of crypto per week, in order to give its former customers their money back in fiat rather than cryptocurrency.
Let us help you understand how bad this is.
The new development means that FTX will be selling $3.4 billion worth of crypto for fiat very soon.
And if they indeed wanted to liquidate $3.4 billion worth of crypto in $200 million tranches, the company would have to keep on selling assets until the end of 2023!
Avoid These Altcoins!
The effect of such a large amount of crypto entering the market, week after week, would be nothing short of devastating in the long run.
Crypto (and many other assets) derive their value from scarcity.
A 200 million-dollar flood entering the market week after week would seriously damage this scarcity, and many cryptocurrencies remain at risk.
Matrixport even mentions that ApeCoin and Axie Infinity’s token (AXS), whose 11% token supply unlocks are anticipated on September 17 and October 20, respectively, are particularly vulnerable.
In all, you should also know that since their most recent token unlock events, ApeCoin and AXS prices have fallen by 24% and 32%, respectively.
According to recent reports as well, Wright Thurston and Eric Schiermeyer, co-founders of Gala Games, are now fighting over claims of embezzlement, to the tune of $130 million in Gala tokens.
As it turns out, both of these founders have even sued one another.
Could GALA be going to zero along with Apecoin and AXS?
According to price trackers like TradingView, Gala, AXS and ApeCoin are down by 75%, 68% and 79% respectively from their 2023 highs, and should be carefully considered before investment.
Has The $3.4 Billion FTX Dump Begun?
All of the above has been mentioned, except how a $1.5 billion cold wallet linked to FTX recently moved around $10M from Solana to Ethereum, according to Blackpool Finance.
These transactions entered the Ethereum network over the Wormhole bridge and included $6.23 million in Ether, $1.2 million in FTX native tokens, $1.8 million in Uniswap, $550,000 in SUSHI, and more.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.