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In today’s episode:

• ✍️ Will FTX Repayments Dump Your $SOL?

TOP STORY

Will FTX Repayments Dump Your $SOL?

Remember FTX?

The Crypto Exchange that showed us why it’s not a good idea to hold your crypto on exchanges?

Well, FTX is set to start repayments to its creditors TODAY, and it could dump your SOL!

But, before everybody who holds its crypto on exchanges jumps up, and says:

“See! They will get their funds back… No need to move my crypto to a wallet…”

Let’s take a look at the numbers that creditors are getting back…

How much are the creditors actually getting back?

If you held BTC on the FTX exchange on November 11, 2022, you will receive up to 118% of your investment back. 

Sounds good right? Well, at least it sounds good until you hear that creditors will be repaid based on their assets' price on November 11, 2022!

Yes, creditors will receive the repayment mostly in cash, and only a very small portion of the asset itself.

This means that you do not have a chance to get 1 whole BTC you once owned and sell it for the current trading price of $95,000!

But, instead, if you had 1 BTC in November 2022, you will get repaid the same value it had at that time = $16,604.46.

Compared to today’s BTC price, that is -$79,000 loss!

Ouch!

How could FTX repayment dump your $SOL?

While most of the repayments will be made in cash, this doesn’t mean that creditors won’t get any of their cryptos back.

The FTX repayment plan also includes a significant portion of these repayments - over 2 billion - in Solana ($SOL).

This is more than 11.2 million SOL!

This could cause increased selling pressure on SOL, as creditors may look to liquidate the tokens as part of their payout.

Expect big price fluctuations as the repayment process unfolds in the coming weeks.

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.