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 Solana (SOL) and the FTX exchange token FTT, along with liquid assets including XRP (XRP), Dogecoin (DOGE), Aptos (APT), Polygon (MATIC), The Open Network (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.”
1/2— Adam Cochran (adamscochran.eth) (@adamscochran) January 17, 2023
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
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 Bitcoin (BTC) and Ether (ETH).
But many were obscure project tokens such as TRUMPLOSE, BEAR, and MEDIA.
He highlighted TRUMPLOSE as an “Easter egg” that 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 that 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.