The FTX token (FTT), the digital currency linked to the bankrupt crypto exchange FTX, saw an explosive rise today. Within one hour, the coin rose more than 67%, reaching a local peak of $2.73. Although the value has now dropped slightly to around $2.54, the token has risen by as much as 81% in the past week.
Despite this recent advance, the FTX token is still well below its all-time high (ATH) from September 2021, when the coin reached a peak value of $84.18. Just a few months later, it was revealed that FTX’s financial balance sheet was incorrect, after which founder Sam Bankman-Fried (SBF) was accused of embezzling user funds.
Background to the recent increase
The sudden price increase appears to be related to the news that FTX is about to pay back almost $16 billion to creditors. These repayments are expected after three key hearings on October 22, November 20 and December 12, 2024. If the repayment plan is approved on October 7, payouts could begin before the end of the year.
Impact on the broader crypto market
The $16 billion refund could lead to a significant boost in the crypto market. In particular, Bitcoin (BTC) and other altcoins such as Ethereum (ETH) and Solana (SOL) could benefit as many creditors may reinvest their refunds in the crypto market.
Objections to the compensation plan
Not all creditors are satisfied with the current compensation plan. Attorney Sunil Kavuri represents a group of creditors who believe they should be compensated in cryptocurrencies, rather than dollars at the value of their assets at the time of the bankruptcy. Under the current plan, creditors will receive less than expected as their assets were valued when the crypto market was at a low point.
Source: https://newsbit.nl/ftx-token-ftt-schiet-omhoog-stijging-van-67-in-een-uur/
