Crypto analyst Willy Woo: FTX liquidation causes this cycle's altcoins to generally underperform

MarsBitNews · 2026-03-25T09:49:10+00:00

Crypto analyst Willy Woo points out that the FTX bankruptcy liquidation team is dumping assets and selling them at discounts to hedge funds. These funds are achieving high returns through hedging strategies, causing most crypto projects to underperform while Bitcoin remains relatively strong. Woo recommends that retail investors hold only Bitcoin.

MarsBitNews

2026-03-25 09:49:10

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Crypto analyst Willy Woo tweeted that the FTX bankruptcy liquidation team is selling assets, including large amounts of locked SOL, and selling locked tokens at a discount to hedge funds through legal agreements. After purchasing at over 60% of the price, the hedge funds hedge their price risk by shorting SOL and other futures, earning approximately 70%-80% risk-free returns. Subsequently, other project teams and foundations sell their locked tokens to hedge funds in advance and hedge through futures markets, transferring the “alpha” that should belong to ordinary investors to market-neutral funds. This has led to poor performance of most crypto projects from 2023 to 2025, while Bitcoin has outperformed. Woo believes the selling pressure related to the next market cycle has already been released and advises ordinary investors to hold only Bitcoin.

SOL1.86%

BTC1.29%

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