Crypto crash: Matrixport talks about possible altcoin crash

 At least $3.4 billion worth of crypto is likely to be sold by FTX so it can return fiat currency to its users instead of tokens, which should create an overhang for altcoins for the rest of the year

Why crypto is down:

Matrixport is a leading digital asset financial services platform that offers a comprehensive suite of innovative products and services to retail and institutional investors. Founded in 2019, Matrixport has quickly grown to become one of the largest and most trusted digital asset financial services platforms in Asia.

FTX, a cryptocurrency exchange, plans to sell about $3.4 billion worth of cryptocurrency to give people regular money instead of digital coins. This might affect other types of cryptocurrencies for the rest of the year, according to a report by Matrixport.

And it's not just FTX doing this. Some groups that invest in cryptocurrencies are feeling a lot of pressure to give back the money they received from their investors. These groups are also expected to sell their digital coins, which could impact the cryptocurrency market.

The cryptocurrency services provider has observed that FTX has expressed its intention to sell $200 million worth of cryptocurrency assets weekly. As a result, the financially troubled cryptocurrency exchange will persist in divesting its assets until the conclusion of 2023.

Solana (SOL) has experienced a decline in value, primarily due to concerns about potential sales by FTX. However, SOL is not the sole altcoin susceptible to this situation.

Moreover, FTX isn’t the only major seller in the market. “Crypto venture capital (VC) funds are also under immense pressure to return funds to their investors,” wrote Markus Thielen, head of research. “Those VC funds are likely to remain as crucial sellers of altcoins and must cash out.”

ApeCoin (APE), yet another cryptocurrency held by venture capital investors, is scheduled to undergo an unlock on September 17th, which will involve 11% of its outstanding tokens. Following the previous unlock on August 17th, which accounted for 4.2% of APE tokens, prices plummeted by 24%. Given the larger scale of this upcoming unlock, it is anticipated that prices will continue to decrease.

Another substantial unlock event is scheduled for October 20th, involving Axie Infinity's token (AXS), with 11% of its tokens becoming available. Since the previous unlock event on July 22nd, AXS has witnessed a decline of 32% in its value.