FTX is seeking legal approval on September 13 to liquidate billions of dollars in cryptocurrency assets. A significant portion of these assets set for liquidation is in Solana (SOL).
A crypto trader named Miles Deutscher recently shared his insights on the potential $1 billion Solana ($SOL) liquidation. While Deutscher acknowledges that such a significant liquidation might seem bearish at first glance, he highlights a few mitigating factors that could lessen its market impact.
Milei Moneda is a new meme coin inspired by the political and economic views of Javier Milei, an Argentine president known for his libertarian and pro-Bitcoin stance. You have an opportunity with the ongoing low presale price to get in early!
Sponsored
Show more +First, Deutscher notes that most SOL tokens are under a vesting schedule until 2028. This suggests that a sudden influx of SOL into the market is unlikely, which could help maintain long-term price stability.
Second, he indicates that Galaxy, the assumed institutional stakeholder, has an interest in maximizing their returns from their SOL assets. Consequently, they would likely opt for over-the-counter (OTC) transactions or gradual sales rather than precipitating a market crash by unloading all their assets in one go.
Lastly, Deutscher mentions a weekly sales cap of $200 million on the FTX exchange, a provision designed to regulate the pace at which SOL is sold and thereby contribute to market stability.
In light of these factors, Deutscher argues that speculation leading up to the liquidation may actually create more market volatility than the liquidation event itself. He therefore advises traders to refrain from making rash short-term bets based solely on the seemingly bearish headlines.
Given Deutscher’s esteemed standing as an analyst, his analysis offers a nuanced view that could be invaluable for traders navigating this complex situation.
Check $RECQ Meme Coin
ICO stage, offering tokens at a discounted price
Facilitates a smooth and efficient economy within the arcade, supporting both arcade and in-game transactions.
Grants access to a diverse range of gaming experiences in the Rebel Satoshi Arcade,
Contributes to a decentralized, community-driven RebelSatoshi platform that integrates gaming with elements of revolution, freedom, and unity, appealing to users who value such principles.