Sep 12, 2023

Matrixport said in a Monday report that at least $3.4 billion worth of crypto is likely to be sold by FTX, so it can return fiat currency to its users instead of tokens, which should create an overhang for altcoins for the rest of the year.

Video transcript

Matrix port is sounding the alarm on a looming alt coin crash. A report from the crypto services provider notes that at least $3.4 billion worth of crypto is likely to be sold by FTX so that it can return fiat currency to its users instead of tokens, this could create um an overhang for alt coins for the rest of the year. Uh What are your thoughts? I know you follow all the alt coin market very closely, you write about it in your newsletter. Yeah. What are your thoughts here? Um Yeah, so, so one of the interesting ones was Solana because they see about 600 change uh close to $700 million worth of Solana that could flood into the markets. I think we have a chart here now. Uh And if we could see kind of like a Yeah, this is, you know, it has been, it, it was a little bit of a rally with Solana obviously with uh the Visa uh announcement and we had the uh co-founder of Salon on and asked about gee what caused that rally right before the Visa announcement. I wonder, I don't know, I'm not saying anything but I'll let you do the math. Uh, but then now reality is hit and, uh, this, this potential that you could get a sell off, uh, because of, uh, as you said, FTX needs to pay back its creditors. It needs to pay back account holders who just want to go home and go away and go someplace else. Um, or, or, you know, just hide their money under the mattress like the way God intended them to. And then we also have a coin. So, Abe coin is an interesting thing. We're gonna have AAA this coming week, we're gonna have a um an unlock, right? So it's a bunch of coins are gonna potentially hit the market and it's 11% of market cap. And then one of the things that we look at at the tie is um a as a percentage of average daily volume, 30 days of daily volume. And what makes this interesting with this eight point release is that it's above, it's gonna be about four, some odd close to 50% of average daily volume. And as I pointed out a few weeks ago, when you have, the larger the, the unlock is as a and the higher percentage of average daily volume it is, you get this uh I I this kind of a weird movement in uh what happens to the coin prices? First of all, if a coin gets an unlock, a significant size as it leads up to it. The price goes down and then the unlock happens and then there's like a slight rally because everyone's like, oh, this is not so bad. I mean, you know, this thing's unlocked and it hasn't been the end of the world and I kind of, that's Mount Idiot for or Mount Fool. Uh is the best way to describe that rally because it, it's not gonna be long last it then drops off and the prices fall even below the time of the unlock. Why? Because at that point, everyone who's gotten coins in the unlock goes, hey, look at that. It's rallied. I'm gonna dump it here and they, they throw it onto the market and there you go. So, uh pay attention to what's gonna go on in, in a coin uh post unlock. So 17th, I think we're gonna see a bunch of coins unlock on the 17th. Um Pay attention to what's going to happen. That might be an interesting uh case study. We'll see.

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