FTX, the crypto exchange that went bust, is planning to dump a huge amount of crypto on the market.
According to a report by Matrixport, a crypto services provider, FTX will sell $3.4 billion worth of crypto assets by the end of 2023 to repay its users in fiat currency.
That’s $200 million worth of crypto every week!
This could create a lot of pressure on altcoins, which are already struggling to keep up with bitcoin.
But FTX is not the only one who wants to cash out. Crypto venture capital funds, which invested in many promising projects, are also feeling the heat.
They have to return funds to their investors, who are losing patience with the volatile market.
This means they have to sell their altcoins, too.
Some altcoins are more vulnerable than others. For example, Solana (SOL), which is one of the crypto assets held by FTX, has been dropping sharply.
Another one is ApeCoin (APE), which has a big unlock event coming up on Sept. 17. That will release 11% of its total supply into the market. The last time ApeCoin had an unlock, its price dropped by 24%. This time, it could be worse.
