The FTT token of bankrupt crypto exchange FTX recently saw a dramatic price surge of 115%, hitting a peak of $2.99 before settling at $2.40. Previously, the token had been trading steadily around $1.30 before this unexpected spike. What’s driving this bullish trend despite ongoing market uncertainty?
On September 29, multiple X (formerly Twitter) accounts, including some prominent ones, started spreading rumors that the FTX bankruptcy estate would begin reimbursing creditors on September 30. These speculations spread quickly, capturing widespread attention and igniting a surge in FTT’s price.
However, official court filings reveal that the bankruptcy plan has not yet been approved. According to data from Kroll, the confirmation hearing for the FTX case is scheduled for October 7. If the plan gets approved, creditors with claims under $50,000 could start receiving repayments by the end of this year, while those with claims above $50,000 may have to wait until 2025.
Before the rumors surfaced, FTT was trading at a high of $1.47 on September 29. As speculation about repayments grew, the token’s price spiked, hitting an intraday high of $2.99 before closing the day at $2.40.
The following day, on September 30, investors anticipated official news regarding the repayments. When no such news came, the token’s value dropped, bottoming out at $1.72 and closing the day at $1.83. Currently, FTT has rebounded slightly, trading at $2.2472—a rise of 8.11% from the previous day.
While FTT investors might be excited by these recent price movements, it’s crucial to note that the FTT token no longer holds any utility as the FTX bankruptcy proceedings continue. The token may be liquidated by the estate to pay creditors, which could result in significant losses for investors. Staying informed about key dates and developments in the bankruptcy case is essential to avoid potential financial setbacks.
What do you think? Will FTT token recover, or is it doomed?
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