How to Invest in Web 3.0 Tokens
A wallet belonging to the now-bankrupt crypto exchange FTX has moved $10 million worth of digital assets from the Solana (SOL) network to Ethereum, raising fears that it could be the start of a series of token dumps during the exchange’s bankruptcy proceedings.
Data from blockchain analytics platform Arkham Intelligence reveals that since August 31, the FTX wallet has shifted $6.23 million in Ether (ETH) and over $4 million in altcoins, including $1.2 million of FTX Token (FTT), $1.8 million worth of Uniswap (UNI), $1.3 million of HXRO (HXRO), $550,000 worth of SushiSwap (SUSHI) and $260,000 worth of Frontier Token (FRONT) to another FTX wallet using the Wormhole Bridge.
On August 24, FTX proposed a plan to appoint Mike Novogratz’s Galaxy Digital Capital Management as the investment manager responsible for overseeing the sale and management of its recovered crypto holdings.
FTX Token Sales Plan
The FTX estate has proposed a plan that would limit token sales to $100 million per week, but could be increased to $200 million for individual tokens. This is to ensure that creditors are paid while minimizing the effect of the sales.
In addition, the exchange has filed a motion to hedge its Bitcoin (BTC) and Ether holdings.
The Delaware Bankruptcy Court will be hearing the case on Sept. 13, although the propositions have yet to be legally binding.
At an April 12 hearing, FTX reported that it had recovered around $7.3 billion in liquid assets, with $4.8 billion of that recovered by November 2022.
How to Invest in Web 3.0 Tokens
Investors interested in Web 3.0 tokens can use the FTX estate’s plan as a guide. The plan limits token sales to $100 million per week, however, individual tokens can be sold for up to $200 million. This is intended to ensure that creditors are paid while minimizing the impact of the sales.
In addition, FTX has filed a motion to hedge its Bitcoin (BTC) and Ether holdings. This is to ensure that investors can make money from Web 3.0 tokens.
Investors should keep an eye on the Delaware Bankruptcy Court hearing on Sept. 13, as the propositions set forward in the filings could be legally binding.
Furthermore, FTX has already recovered $7.3 billion in liquid assets as of April 12, with $4.8 billion of that sum recovered by November 2022.
How to Invest in Web 3.0 Tokens
As of April 12, documents presented during the hearing showed that FTX held a total of $4.3 billion in crypto assets available for stakeholder recovery at market prices.
John Ray III, CEO of FTX, stated that the company had already initiated the process of inviting interested parties to the relaunch of the FTX.com exchange as part of the reorganization plan.
According to FTX lawyers, the new exchange is expected to be up and running in the second quarter of 2024.
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