Justin Sun, the creator of Tron and a stakeholder in Huobi, is pondering the acquisition of assets from FTX, a failing crypto exchange on the brink of asset liquidation. Sun took to social media on September 11 to announce that he is mulling over a proposal to buy FTX’s tokens and other holdings in order to mitigate their impact on the crypto market.
This news surfaces at a time when there is growing apprehension about a possible market downturn. FTX, headed by Sam Bankman-Fried, is in the process of seeking judicial consent for a large-scale asset sale scheduled for a hearing on September 13. The troubled exchange intends to offload its $3.4 billion worth of crypto assets, including significant holdings in Solana (SOL), its own FTT token, Bitcoin, Ethereum, and Aptos. The sale is being facilitated by Galaxy Digital due to their expertise in executing major crypto transactions without causing market disruption.
As the court hearing approaches, there’s a sense of urgency among market analysts and participants that this could trigger substantial sell-off pressures. Solana alone constitutes $680 million of FTX’s sizable crypto asset pool. Amid these circumstances, there are whispers that the beleaguered firm might unload its Solana holdings en masse, causing market anxiety, as the token is currently valued at around $17.6.
Contrary to what is being suggested on social media platform X (formerly known as Twitter), FTX won’t be able to dump all its Solana holdings immediately. A considerable chunk of these assets is time-locked and will be released according to a monthly schedule stretching until 2028.