FTX Token (FTT) recorded a massive price spike of 63% on Monday morning as the hope of repayment among investors jumps in. Almost two years since FTX’s epic crash, billions lost, and Sam Bankman-Fried (SBF) behind bars, the end seems to be in sight.
However, there is a catch in the repayment story amid rumors circulating on social media that FTX customers will see funds in their crypto wallets as soon as tomorrow. The court process is still ongoing, and no repayment plan has been finalized.
FTX token trading vol spikes 3600%
FTX token price jump of over 65% in the last 24 hours made it the biggest gainer of the day among the top 100 cryptos by a huge margin. FTT trading around the $1.6 zone saw a major buying activity to launch its price to breach the $2 mark. Its 24 hour trading volume skyrocketed by 3636% to stand at $353 million.
The token linked to the crashed crypto exchange is now up by a solid 80% in the last 30 days but it is still down by a huge 97% from its all time high (ATH) of $85.02, recorded on September 9, 2021. FTX token is trading at an average price of $2.34, at press time.
This surge comes in over the growing anticipation of fund repayments and rumors circulating on social media of it happening this week only. Meanwhile, FTX’s Chapter 11 Bankruptcy filing suggests that a key court hearing is scheduled for October 7, 2024, where the final restructuring plan could be approved.
If Judge John T. Dorsey gives the green light to the plan, customers with balances under $50k could see compensation by year’s end, while larger investors may wait until 2025.
Creditors unhappy with 10-25% payouts
FTX creditors have expressed their dissatisfaction with the planned payouts while the exchange prepares to distribute $16 billion to make lenders whole.
As reported, creditors are set to receive between 10% and 25% of their crypto back but at petition date prices when Bitcoin was valued at $16,000. As of now, BTC is hovering around $65,000. Many creditors had argued that this plan wouldn’t cover their full losses with some reporting mental distress due to the collapse, as life savings were lost.
The US Securities and Exchange Commission (SEC) also pointed to potential objections, especially if repayments are made using stablecoins. The controversy follows a settlement that involves $600 million in Robinhood shares linked to FTX and Emergent Technologies, co-founded by SBF.
