FTX liquidators have staked a considerable amount of ETH, MATIC, and SOL coins, calming fears of an imminent market sell-off.
The bankruptcy estate for now-defunct cryptocurrency exchange FTX has given an indication that it plans to hold its crypto assets for a considerable time as part of efforts to make affected customers whole.
In the past seven days, the bankruptcy estate has staked over 24,100 ETH (approx. $38.1 million) and 17.88 million MATIC (approx. $9.4 million). Within the same period, the estate also reportedly staked 5.5 million SOL (approx. $122 million).
According to on-chain data from blockchain analytics platform Arkham Intelligence, the estate made these deposits through addresses belonging to FTX and its sister firm Alameda Research. Both addresses hold a combined balance of $730 million worth of crypto assets at the time of writing.
The recent move by the bankruptcy estate to tap into staking rewards represents an efficient way to maximize its holdings.
Given the average 4-6% yield on staking ETH, MATIC, and SOL, the bankruptcy estate would increase its balance sheet. The estate is also maximizing yield through rewards on its decentralized finance (DeFi) investments.
Staking and On-chain Transparency Calms Sell-off Fears
In September, the FTX bankruptcy estate received court approval to liquidate an estimated $3.4 billion worth of crypto assets held by the now-defunct exchange. As reported by The Crypto Basic at the time, the approval led to fears of a market sell-off despite the court providing some safeguards to minimize the impact of the liquidation.
The most recent move by the bankruptcy estate to stake its assets alleviates these fears of an imminent sell-off. It further underlines the bankruptcy estate’s intention to liquidate its holdings in a way that does not adversely impact market movements.
Additionally, the transparency provided by blockchain makes it easier for market participants to track the estate’s assets and respond to any moves that could substantially affect the market.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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