TRON Founder Justin Sun Unexpectedly Bursts Into FTX's Liquidation Plans
While the market worries about possible price pressure due to the imminent liquidation of FTX's assets, Tron founder Justin Sun has expressed his desire to acquire most of the company's assets.
FTX currently holds liquid crypto assets totalling $1.3 billion. These assets include Solana (SOL), Ethereum (ETH), Aptos (APT), Dogecoin (DOGE), Tron (TRX) and Polygon (MATIC). Many are concerned that the assets liquidation by the exchange will cause a market panic, leading to a significant drop in cryptocurrency prices.
Sun expressed his opinion on the matter on his X account, wishing to buy FTX stakes. He attributed his decision to mitigating the potential risk of cryptocurrency collapse.
Contemplating an offer for FTX's holding tokens and assets to reduce their selling impact on the crypto community. Let's unite to bolster our crypto ecosystem!🙏— H.E. Justin Sun 孙宇晨 (@justinsuntron) September 11, 2023
The company owns DOGE, TRX and MATIC, which accounts for 6-12% of weekly trading volume. Their liquidation could have a negative impact on the market. However, FTX owns only 1% of Bitcoin's weekly trading volume. And its liquidation will not affect the market.
In addition, there was concern about how the price of SOL might behave during liquidation. However, the liquidation system allows only 9.2 million SOLs to be unlocked per month.
FTX is currently under new management and going through bankruptcy proceedings. One of the terms is liquidation of assets. The company filed papers where it revealed its liquidation plan, but soon changed it. Perhaps FTX considered the risk of market impact and approached the issue strategically.
The court allowed the company to begin selling or transferring digital assets without any liens or claims, and to enter into post-petition hedging arrangements. The court's ruling also implies consideration of the interests of all stakeholders.