Kaiko: 1% market depth of FTX's main assets increased from US$80 million to more than US$200 million

Kaiko noted in a report that as of last year, FTX estate had recovered nearly $4 billion in digital assets and was authorized to start selling some of its assets in September 2023. Since November 2022, FTX estate's asset recovery has benefited from a rebound in cryptocurrency prices, with key assets such as SOL, TON, and TRX more than doubling in value. The 1% market depth of FTX's main assets (including SOL, DOGE, TON, TRX, BIT, XRP, and the native token FTT) rose from $80 million to more than $200 million, enabling larger sales without causing serious price disruptions. FTX also holds a number of smaller, less liquid tokens, some of which have little market value. These include tokens such as Oxygen (OXY) and Maps (MAPS), which are particularly problematic for FTX estate due to FTX's overwhelming ownership. The exchange holds 99% of MAPS, 97% of OXY, and 95% of Serum (SRM). Given FTX's dominance in these assets, any attempt to sell them could cause their prices to almost immediately drop to zero. As a result, FTX estate has given a significant discount to its valuation. MAPS is considered worthless, OXY faces a 99.9% discount, and SRM is discounted by 18.6% due to liquidity issues. Other assets, such as BRC, BRLT, and BTRN, are worth zero because they are no longer traded. Earlier, John Dorsey, a judge in the Delaware Bankruptcy Court, decided to approve the plan at a hearing on Monday to begin distributing funds to creditors. Under the plan, 98% of creditors will receive at least 118% of the value of their claims in cash.