FTX officially announced that it will not be restarted, FTT is reborn as a meme

Original｜Odaily Planet Daily

Author｜jk

On Wednesday, January 31, local time in the United States, the bankruptcryptocurrencyexchange FTX told the court it expected to be able to repay its customers in full. The announcement came through a court hearing, and U.S. Bankruptcy Judge John Dorsey has preliminarily approved the date, despite the disapproval of a significant number of creditors.

According to court proceedings, FTX abandoned plans to relaunch its platform and instead focused on repaying its former customers in full. According to court proceedings, FTX abandoned plans to relaunch its platform due to a lack of buyers. Advisors conducted a thorough search of the market to find investors willing to restart FTX, but no one was willing to provide a restartexchangeCash required.

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FTX attorney Andrew Dietderich said the reimbursement process will require claimants to submit proof to verify they actually held and lost assets on FTX. This process will be reviewed by restructuring advisors.

Is the platform currency FTT still useful?

Native to FTXToken FTT briefly rose after the company's plans were announced, but then fell sharply. A few days ago, the price of FTT had been fluctuating briefly around US$2.65, but now it has reached around US$1.91, with the lowest point reaching US$1.65, and the 7-day decline reached 27.04%.

FTT trend, source: Coinmarketcap

This market reaction is actually to be expected. According to the script that was previously expected to be restarted, the appreciation of FTT is based on the fact that after FTX restarts, it is still possible to re-enable FTT as a nativeToken, or exchange part of it for FTT to issue new native tokens. However, this expectation was shattered when FTX announced that it would not restart; after giving up on restarting, FTT has actually been unable to find new uses, and as FTX continues to liquidate assets to compensate customers, the value of FTT will inevitably follow the sell-off. further decline.

According to the worst expectations, FTT may eventually become like Luna Classic after the collapse of Terra, becoming a de facto memecoin, fluctuating with the emergence of every relevant news, but there is a high probability that it will not be able to return to the high point of the year. .

Full compensation: This is good news, but at what point in time will the compensation be paid?

FTX previously reported more than 36,000 claims totaling approximately $16 billion. Last year, it said it could only compensate about 90% customers. Now, it is naturally better news to plan to compensate customers in full, but there is also a problem that comes with it; FTX may not be able to compensate customers according to the original token type, so if the compensation is based on the US dollar value, based on At what point in time is the dollar value of ?

Before the collapse of FTX, the value of Bitcoin was about $20,000. If based on the time when FTX declared bankruptcy, the value of Bitcoin would have been around US$16,000, but now it is around US$43,000, a huge difference. “Many of these claims are based on the significant decline in the value of the currency during that tumultuous period,” Kris Hansen, an attorney for FTX’s creditors’ committee, said during Wednesday’s hearing.

According to Bloomberg, U.S. Bankruptcy Judge John Dorsey ruled that the size of each claim will be based on the amount owed to customers or creditors on the day FTX filed for bankruptcy. Dorsey also approved rules for estimating the amount owed by each creditor and customer. Some clients have complained that fixing their claims to prices at the end of 2022 would cause them to miss out on rising digital asset prices. Dorsey ruled that bankruptcy rules require a company's debts to be tied to the date it files for court protection. Therefore, this is similar to the claim value proposed by FTX previously reported by Odaily, which is based on the price of Bitcoin at around $16,000, which will undoubtedly cause great losses to creditors.

On the bright side, if it weren’t for this round of bull market starting in 2023, the remaining balance after FTX’s bankruptcy wouldcryptocurrencyAssets may not be enough for it to repay all its investors. In other words, it is almost impossible to repay according to recent prices, but this round of appreciation has made it possible for FTX to pay compensation at the price in November 2022.

“I hope the courts and stakeholders understand this is not a guarantee, but a goal,” Dietderich said. "There's a lot of work and risk between us and this outcome. But we believe this goal is achievable and we have the strategy to get there."

The article comes from the Internet:FTX officially announced that it will not be restarted, FTT is reborn as a meme

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