As a researcher with a background in finance and cryptocurrencies, I find FTX’s reorganization plan to be a promising development for the exchange’s customers, as well as its native token, FTT. The proposed distribution of assets among creditors could potentially lead to significant relief for those who have been affected by the exchange’s bankruptcy filing.
As a researcher studying the latest happenings in the cryptocurrency industry, I’m excited to share that FTX, the once-defunct crypto exchange, has announced a restructuring plan to refund nearly all of its affected customers.
The announcement caused a significant increase in demand for the exchange’s own token, FTT. Over the last week, FTT experienced a robust rise of 52%, peaking at a monthly high of $2.29 during the early hours of trading on Wednesday.
FTX Unveils Debt Repayment Strategy
FTX reveals an estimated debt obligation of around $11.2 billion to creditors based on the details in their reorganization plan published Tuesday. The company holds assets between $14.5 and $16.3 billion, which they plan to allocate among the creditors.
According to the proposed scheme, customers whose claims amount to $50,000 or below will receive around 118% of the approved claim value. This compensation is intended to reach around 98% of the creditors, bringing relief to most FTX users who have been affected by frozen funds since the exchange entered bankruptcy proceedings in November 2022.
In a press release on Wednesday, FTX announced that due to the ongoing Chapter 11 proceedings, the company was unable to benefit from the increase in value of the missing tokens. As an alternative, FTX needed to locate other assets it could use to pay back its creditors.
After the departure of its founder Sam Bankman-Fried, FTX announced John Ray III as its new CEO in November 2022. During this time, Ray expressed his shock over the “total collapse of corporate governance” and the “lack of reliable financial records” he encountered at FTX. In a statement released on Wednesday, Ray added:
As a researcher studying bankruptcy reorganization plans, I’m excited to present a Chapter 11 proposal that ensures full repayment of claims, including accrued interest, for all non-governmental creditors.
Sam Bankman-Fried, the founder of FTX, was held accountable for his actions and found guilty on seven criminal charges. These charges included allegations of misappropriating massive sums of money from FTX’s customer base. As a result, he received a sentence of 25 years in prison.
FTT Bulls Eyeing $2.55 For Potential Breakout Continuation
The current price of FTT is now at $2.050 following a recent increase that surpassed its monthly peak. This price surge emerged after FTT’s value had been confined within the range of $1.17 and $1.48 for some time.
With the present pricing, FTT encounters a substantial barrier at $2.169. This obstacle has instigated the ongoing adjustment. Should FTT maintain its bullish trend, the upcoming resistance to monitor lies at $2.55 in its day-to-day price chart.
Reaching this significant milestone might prompt a return to the $3 threshold, a price point last seen in January.
As a researcher, I would advise that if the price should correct further, it’s important for FTT bulls to keep a close eye on the $1.95 and $1.765 support levels. These levels are crucial in preventing potential losses and preserving the gains made over the last month, which translates to an impressive 18% increase during this period.
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2024-05-08 22:16