Tron's Justin Sun Considers Buying FTX's Holdings Tokens to Ease Selling Impact on Markets
A potential liquidation of FTX holding tokens will have a significant impact on the market as the figure hits $1.3 billion in assets, experts opine.
Justin Sun, the founder of Tron Network is contemplating making a bid for the assets held by FTX to reduce the impact a sale could have on the market as he aims to ignite growth in the sector.
Recent data from market intelligence firm Messari shows FTX holds $1.3 billion excluding stablecoins in liquid assets with liquidations possibly starting on Wednesday.
The impact on the market differs depending on each token relative to its weekly traded volumes.
Per the data, FTX’s Bitcoin (BTC) holdings stand at approximately $353 million which is about 1% of the asset's weekly volumes so a sale will not have a significant impact on the market like others.
For Dogecoin (DOGE), Polygon (MATIC), and Tron (TRX), FTX and Alameda Research hold $20 -$30 million which goes up to 12% of weekly volumes, a figure that can affect asset prices in the market.
FTX Solana (SOL) holdings of $720 million would have recorded the most significant impact on the market but the majority of assets are not available on the open market as only $9.2 million SOL will be unlocked per month.
Sun added on X (formerly Twitter) that he can purchase the TRX tokens through over-the-counter transactions.
The digital asset market has recorded a rough patch over the past months following a series of unfortunate events and wider macroeconomic factors.
Last year saw both the collapse of the Terra ecosystem and FTX which wiped billions off the market and dwindled investor confidence.
Overall, some assets were down over 55% of their values with BTC trading below $20,000. This year sparked a fresh resurgence in the market
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