Doctor Profit, a crypto trader, recently took to Twitter to address the widespread concerns about FTX’s potential liquidation of assets worth billions on September 13th. According to @DrProfitCrypto, the fears surrounding this event are largely unfounded and are contributing to unnecessary market panic.
Firstly, Doctor Profit points out that even if the court grants approval for the sale of FTX assets on September 13th, the execution of this sale won’t happen immediately. He suggests that a structured framework will be in place for selling these tokens, potentially at a rate of $200 million a week. This would make it unlikely for the SEC and CFTC to sit idly by while FTX “dumps” assets in a way that could destabilize the market.
Secondly, he raises questions about the platform where these assets will be liquidated. Doctor Profit doubts that Binance will be involved, as it’s not legally permitted to liquidate these types of assets directly through government channels on the secondary market. Instead, an underwriter will likely manage the liquidation process, ensuring compliance with laws and regulations while also conducting risk assessments and finding buyers, most likely in the OTC market. This process, he notes, could take months and is not something that should induce panic.
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Show more +Doctor Profit also warns against the “FUD” (Fear, Uncertainty, Doubt) that is currently circulating, suggesting that it’s a tactic used by market makers to manipulate sentiment. He believes that the market may experience a “fake dump” to create more fear and panic among retail investors.
In terms of his own market predictions, Doctor Profit is confident that despite the FUD and potential short-term market dips, the asset in question will likely hit a low of $23,500 before rebounding strongly to levels above $30,000.
It’s worth noting that while Doctor Profit is a respected figure in the crypto community, market conditions are highly volatile and unpredictable. Always do your own research and consider multiple viewpoints before making any investment decisions.
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