- FTX token surged 113% but corrected, was trading 31.53% higher at $2.14.
- FTX creditors may only recover 10-25% of their cryptocurrency holdings, per updated documents.
As a seasoned researcher with years of experience navigating the cryptocurrency market, I find myself both intrigued and cautiously optimistic about the recent developments surrounding FTX. The token’s impressive 113% surge was indeed a spectacle to behold, but as we all know too well in this industry, nothing moves in a straight line.
There’s a lot of chatter online indicating that FTX, a bankrupt cryptocurrency exchange, might start dispersing compensation to its creditors and clients as early as September 30th.
However, these claims are false, as no court has approved the reimbursement plan yet.
The story so far
To clarify for those who may not be aware, FTX originally announced back in May that they planned to completely reimburse all creditors. Some creditors were even anticipated to receive over 100% of their initial claims.
On the 28th of September, it was disclosed by FTX creditor Sunil Kavuri that revised bankruptcy records suggest that creditors might recover anywhere from 10% to 25% of their initially held cryptocurrencies.
The rumor spread widely on the internet, as pointed out by the user Crypto Rover (previously known as Twitter), who drew attention to it.
What’s the reality?
As a crypto investor, I’ve been closely monitoring the situation with FTX. According to the recent Chapter 11 filing update, the court hearing scheduled to confirm their restructuring plan is set for October 7th. This hearing will be presided over by Judge John T. Dorsey from the United States Bankruptcy Court for the District of Delaware. I’m keeping a close eye on this development and eagerly awaiting more updates.
As an analyst, I’m suggesting that should the proposed plan be enacted, individuals with claims valued less than $50,000 might anticipate receiving their payments by the close of 2024.
Consequently, individuals making larger claims might experience extended wait times, as distributions are anticipated to be pushed back to either the initial or second quarter of 2025.
The community weighs in
Remarking on the same, Sunil, an FTX Creditor Champion, took to X and noted,
Adding to the fray was another X user who said,
“No they won’t.”
How will the market react?
As it stands now, the repayment to creditors is set according to the worth of Bitcoin (BTC) when the court case was initiated. At that point in time, the price of a single Bitcoin was around $16,000.
Consequently, creditors and previous clients would end up with approximately 25% of their initial investments, as Sunil Kavuri pointed out.
Yet, certain financial experts think that this payment might boost the overall cryptocurrency market.
In a recent study, Markus Thielen (founder of 10x Research) proposed an estimation that this reimbursement might induce a capital influx ranging between $5 billion and $8 billion. This could significantly boost demand and possibly cause prices to rise.
Sharing a similar line of thought was a crypto trader and investor Sheriff who noted,
“More inflow.”
FTX Token price action
On September 29th, there was a significant increase in the value of FTX Token (FTT), rising by as much as 113% at its peak during the day.
Despite a correction later in the day, FTT still closed 57% higher than its opening value. This sparked speculation among investors about its future trajectory.
According to the most recent figures from CoinMarketCap, Fantom’s token (FTT) has surged by approximately 31.53% and is currently priced at $2.14. This development has left investors intrigued about FTT’s possible growth trajectory in the forthcoming weeks.
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2024-09-30 19:04