Coinbase: The token sell-off by FTX is unlikely to trigger market turbulence

ChainCatcher news, according to a research report released by Coinbase, it believes that the token sell-off from FTX is unlikely to trigger market turbulence due to various mitigating factors.

The report states that, first, the sale of tokens will not suddenly create significant selling pressure on the market, as the initial liquidation cap is only $50 million per week, which will then increase to $100 million in the following weeks. Additionally, David Duong, the head of institutional research, noted that the sell-off of certain tokens is strictly controlled and requires a 10-day advance notice to these committees. As part of the token redemption plan, a large portion of the SOL held by FTX will be locked until 2025, and the same applies to other tokens that need to be sold.