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Which Tokens could FTX Dump on the Market?

A Donald Trump prediction token, an animal fundraising coin, and tokens for many Solana projects are among the illiquid tokens.

The bankrupt FTX exchange’s new administration has identified $5.5 billion in assets that can be used to settle creditors, raising concerns that a big swath of crypto assets would be dumped on markets.

On January 17, FTX debtors identified $3.5 billion in crypto assets, $1.6 billion of which were related to the bankrupt exchange. Solana’s SOL and FTX exchange token FTT are the most well-known holdings, along with liquid assets such as XRP, DOGE, Aptos (APT), Polygon (MATIC), TON, and BitDAO (BIT).

The tokens were appraised by liquidators at the time of the bankruptcy petition. Cinneamhain Ventures partner, Adam Cochran, commented: “So liquidators were counting token prices on the day of filing, and consider the $529M of FTT to be ‘liquid’ in this calculation, as well as $685M of Solana which would mega bomb the SOL market.”

He went on to say that these were the only “liquid” tokens they considered, and that “anything else is going to tank the price if you sell it.”

A list of illiquid crypto tokens has also been revealed, increasing concerns that they may be traded, resulting in a price fall.

Fortune reporter Leo Schwartz also tweeted the FTX report on January 18, highlighting the “illiquid tokens” list, which includes nearly 10 billion Serum (SRM), LUNA, and Solana-wrapped versions of BTC and ETH.

However, many were esoteric project tokens like TRUMPLOSE, BEAR, and MEDIA.

TRUMPLOSE was emphasised as a “Easter egg” that connects in with FTX and Alameda’s big donations to Democratic candidates. TRUMPLOSE is a prediction token utilised by FTX during the 2016 US presidential election. Traders may buy TRUMPWIN or TRUMPLOSE tokens, which would resolve to $1 if Trump won or lost. FTX has about 14 million of them.

BEAR Coin is a cryptocurrency that aims to aid animals through decentralised fundraising in collaboration with non-profit organisations and animal enthusiasts. On the FTX balance sheet, there are 190 billion of them.

It also holds 8.3 million tokens from Media, a bandwidth-sharing network. The list goes on with 9.8 billion MAPS tokens from the Maps.me travel service, and roughly 10 billion OXY tokens for the Solana-based DeFi broker Oxygen.

2.4 billion in Alium Finance (ALM) and more than 277 million in Bonafida (FIDA), a Solana developer platform, are also illiquid assets. The list also contained holdings in BRZ, GT, LIKE, HRXO, MSOL, JSOL, XSUSHI, AELPH, and JET.

On January 18, FTX founder Sam Bankman-Fried returned with a fresh blog post in which he said the FTX report’s information on the state of the firm was “very misleading.”

“FTX US was solvent when it was transferred to S&C [Sullivan & Cromwell] and probably certainly remains solvent today,” he said.

 

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