FTX Liquidations Loom, But Justin Sun Has A Plan

In a move to protect the cryptocurrency community from potential market turbulence, Justin Sun, the founder of Tron TRON/USD, said Monday he is considering a tender offer for TRX/USD tokens currently held by FTX FTT/USD.

This move aims to neutralize the potential adverse effects on the market once these tokens are liquidated.

What Happened: FTX, as per court documents, possesses around $3.4 billion in highly liquid cryptocurrencies as of Aug. 31.

The exchange has plans, awaiting the court's green light, to liquidate them at a rate of $100–$200 million on a weekly basis.

Benzinga's Future of Digital Assets conference, scheduled for Nov. 14, will spotlight such strategic moves in the crypto sphere. Experts and industry leaders will convene to discuss and dissect significant developments and strategies, ensuring a safer and more robust ecosystem.

"Contemplating an offer for FTX's holding tokens and assets to reduce their selling impact on the crypto community. Let's unite to bolster our crypto ecosystem," Sun said.

Also Read: Beware Of Pig Butchering: What Crypto Investors Need To Know About The Latest Scam

Why It's Important: Ryan Selkis, founder and CEO of crypto market intelligence Messari, provided an overview of assets that might experience high stress due to the anticipated FTX liquidations.

It's worth noting that Sun's relationship with FTX isn't new. In a crisis that the exchange faced last year, Sun extended his support and even committed to assisting Sun coin holders who were impacted by FTX's challenges.

Read Next: $3B Crypto Sell-Off Looms, Could Tank The Market, Predicts Analytics Firm

Meet and engage with transformative Digital Asset and Crypto business leaders and investors at Benzinga's exclusive event - Future of Digital Assets. Tickets are flying-  get yours! 
Photo via Shutterstock.