Which tokens could FTX dump on the market?

January 18, 2023 Coin Telegraph

The list of illiquid tokens includes a Donald Trump prediction token, an animal fundraising coin and tokens for several Solana projects.

The new management of the bankrupt FTX exchange has identified $5.5 billion in assets that can be used to repay creditors, sparking fears a large swathe of crypto assets could be dumped on markets.

On Jan. 17, FTX debtors identified $3.5 billion in crypto assets with $1.6 billion associated with the bankrupt exchange. The best known holdings are Solana's SOL and FTX exchange token FTT, along with liquid assets including XRP, DOGE, Aptos (APT), Polygon (MATIC), TON, and BitDAO (BIT).

Liquidators valued the tokens 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 nuke the SOL market.”

He added these were the only “liquid” tokens they counted, adding “everything else is going to tank the price if you sell it.”

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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 nuke the SOL market. pic.twitter.com/UTIxQ4EDdX
— Adam Cochran (adamscochran.eth) (@adamscochran) January 17, 2023

A list of illiquid crypto tokens has also been identified raising concerns they could be sold off causing a price crash.

On Jan. 18, Fortune reporter Leo Schwartz also posted the FTX report, highlighting the “illiquid tokens” list includes almost 10 billion Serum (SRM), LUNA, and Solana-wrapped versions of BTC and ETH.

But many were obscure project tokens such as TRUMPLOSE, BEAR, and MEDIA.

A breakdown of what FTX has deemed "illiquid tokens," including my personal favorite easter egg from the infamous SBF balance sheet, TRUMPLOSEhttps://t.co/iz9wAF3fM4 pic.twitter.com/c3HHlrtiwM
— Leo Schwartz (@leomschwartz) January 17, 2023

He highlighted TRUMPLOSE as an "Easter egg" which ties in with FTX and Alameda supporting Democrat politicians with large donations. TRUMPLOSE is a prediction token that FTX used during the U.S. presidential election. Traders could purchase TRUMPWIN or TRUMPLOSE tokens that would resolve to $1 should Trump have won or lost. FTX holds almost 14 million of them.

BEAR Coin is a cryptocurrency designed to help animals by decentralized fundraising in cooperation with NGOs and animal lovers. There are 190 billion of them on the FTX balance sheet.

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

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

SBF still blogging

On Jan. 18, FTX founder Sam Bankman-Fried reappeared with a new blog post claiming the FTX report’s information on the state of the business was “extremely misleading.”

“FTX US was solvent when it was turned over to S&C [Sullivan & Cromwell], and almost certainly remains solvent today,” he stated.

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Wait and see approach: 3/4 of Bitcoin supply now illiquid

January 5, 2022 Coin Telegraph

Accumulation

Around 76% of the total circulating Bitcoin supply is now illiquid according to on-chain analytics from Glassnode.

Bitcoin markets have been consolidating since the beginning of the year, but on-chain metrics are painting a more positive picture as more of the asset is becoming illiquid.

On-chain analytics provider Glassnode has been delving into Bitcoin supply metrics to get a better view of the longer-term macro trends in its weekly report on Jan. 3.

The findings revealed that although the asset has been trading sideways so far this year, more BTC has become illiquid. There has been an acceleration in illiquid supply growth which now comprises more than three quarters, or 76%, of the total circulating supply.

Glassnode defines illiquidity as when BTC is moved to a wallet with no history of spending. Liquid supply BTC, which makes up 24% of the total, is in wallets that spend or trade regularly such as exchanges and hot wallets.

“We can see that over the final months of 2021, even as prices corrected, there has been an acceleration of coins from liquid, into Illiquid wallets.”

The figures suggest that more Bitcoin is being transferred into storage indicating an increase in hodling habits and accumulation. The decline in highly liquid supply also hints that there may not be a major selloff or capitulation event at any time in the near future.

BTC liquid and illiquid supply as a percent of the total: Glassnode

The researchers concluded that these conditions indicate “divergence between what appears to be constructive on-chain supply dynamics, compared to bearish-to-neutral price action.”

In the same report, Glassnode stated that the total supply held by long-term holders has plateaued over the past month or so. This suggests that longer-term investors have stopped spending or selling coins and have become hodlers or even accumulators at this stage. “This provides another constructive view of market conviction,” it concluded.

The current supply held by long-termers is 13.35 million BTC, a decline of just 1.1% from October’s high of 13.5 million coins. Glassnode defines these long-term holders (LTH) as wallets or accounts that have held their Bitcoin for more than 155 days.

illiquid