The movement of $10 million of crypto has led to fears of a ‘token dump.’
The wallet – which is owned by bankrupt cryptocurrency exchange FTX – moved the vast amount of digital assets from the Solana network and into Ethereum.
FTX is currently involved in bankruptcy proceedings and concerns have been raised that this could signal the beginning of a series of token dumps.
Blockchain analytics platform Arkham Intelligence claims the wallet involved has transferred $6.23m worth of Ether and more than $4m of altcoins since August 31st.
The remainder of the altcoins is broken down into $1.2m of FTX Token, $1.8m of Uniswap, $1.3m of HXRO, $550,000 worth of SushiSwap and $260,000 of Frontier Token.
Galaxy Digital Capital Management is tasked with overseeing the sale and management of any recovered crypto holdings of FTX.
Last month Mike Novogratz – CEO of Galaxy – suggested a plan showing FTX estate would only be permitted to sell $100 million of the tokens per week.
The number could rise but it is put in place to minimize token sales' impact on the industry while still making payments to FTX creditors.
FTX lawyers claim the launch of its new exchange should be completed in 2024.