FTX Will Sell Crypto Assets, Coinbase Claims Will Not Affect Market

JAKARTA - Coinbase's head of Institutional Research, David Duong, recently stated that liquidation of crypto assets from the upcoming FTX exchange will not have a major impact on the market.

Duong's analysis shows that FTX's crypto asset liquidation has fairly tight weekly sales limits, namely $50 million (around Rp720 billion) per week for the initial stage and $100 million (around Rp1.440 trillion) per week for the following weeks.

Based on court documents, FTX has various digital assets, including Solana (SOL) worth $1.162 billion (around IDR 16.679 trillion), Bitcoin (BTC) worth $560 million (around IDR 8.032 trillion), and Ethereum (ETH) worth $192 million (around IDR 2.755 trillion) on August 31.

Duong also noted that there are strict controls applied to selling certain "insider" tokens, requiring prior 10 days notification to the same committee.

In addition, Coinbase researchers highlighted FTX's plan to lock up most of the SOL cryptocurrencies owned by the exchange until 2025. Sales that FTX will conduct are also based on selling crypto assets through investment advisors if they get prior committee approval.

Macro, Duong remains optimistic about Bitcoin, even with monetary policy uncertainty. He hopes the US Federal Reserve will relax monetary policy in the first or second quarters of 2024, which is expected to support Bitcoin as an alternative to the traditional financial system.

This statement reflects the belief that crypto assets continue to be an integral part of the global financial landscape, with FTX liquidation not considered a serious threat to market stability.