Altcoin Market Braces For FTX's $3.4B Crypto Offload Through 2023

Crypto exchange FTX (CRYPTO: FTT) is anticipated to offload approximately $3.4 billion in cryptocurrency to provide its users with fiat currency instead of tokens, a move expected to impact the altcoin market for the remainder of the year, according to a report.

The Matrixport report highlights FTX's plan to liquidate $200 million in crypto assets weekly, indicating that this trend will persist until the close of 2023.

In light of these developments, Benzinga's Future of Digital Assets conference on Nov. 14 is a must-attend, featuring industry leaders who will share their expert insights on the game-changing market shifts in the digital asset world.

FTX isn't the sole major player offloading assets.

Markus Thielen, the head of research at Matrixport, stated, "Crypto venture capital (VC) funds are also under immense pressure to return funds to their investors."

Also Read: Buterin's Twitter Account Reclaimed After $700,000 Crypto Theft

He emphasized that these VC funds will continue to be pivotal sellers of altcoins.

Solana (CRYPTO: SOL) has already experienced a decline, influenced by FTX's potential sales, and it isn't the only altcoin affected.

ApeCoin (CRYPTO: APE), a cryptocurrency held by VC investors, is set for an unlock on Sept. 17, representing 11% of its outstanding tokens.

Following a previous unlock of 4.2% APE on Aug. 17, its value decreased by 24%.

With the upcoming unlock being more substantial, a further decline in prices is anticipated.

Additionally, Axie Infinity’s token (CRYPTO: AXS) has an unlock scheduled for Oct. 20, releasing 11% of its tokens. Post its last unlock on July 22, AXS's value dropped by 32%, the report highlighted.

Read Next: Crypto Financing Active Despite 5X Dip In Private Funds, Says Ex-ARK Invest Advisor

Meet and engage with transformative Digital Asset and Crypto business leaders and investors at Benzinga's exclusive event - Future of Digital Assets. Tickets are flying-  get yours!

Photo: Shutterstock