According to the latest news from the US hearing, bankrupt exchange FTX has stated in the recent hearing that it will fully compensate its cryptocurrency clients and also announced that it will abandon the restart of its exchange business. But is it really that simple?
(Previous summary:
FTX aggressively sold cryptocurrency assets? Cash reserves doubled to 4.4 billion RMB within 3 months! Hoping to raise funds to repay users.)
(Background information:
FTX claims hearing scheduled for January 25th! Creditors optimistic about “possible direct compensation” with compensation rate increased to 80%.)
Bankrupt cryptocurrency exchange FTX has updated its liquidation progress. According to a recent post by cryptocurrency trader Ashcryptoreal, the latest news from the court hearing shows that FTX Exchange is expected to fully compensate its cryptocurrency clients in the bankruptcy liquidation. At the same time, the lawyer stated that FTX will abandon the restart of its cryptocurrency exchange as no buyers have appeared.
He optimistically stated:
However, SC&P executive Baylor Landry reminded the market not to be overly optimistic because the amount of customer compensation will be calculated based on the market price at the time of FTX’s bankruptcy:
FTT experienced a short-term plunge of 25%
Previously, the market was optimistic about the restart of FTX’s exchange, and the price of FTX’s native token FTT also rose from around $2.65 to $2.99 yesterday (January 31st).
But due to the release of the news that FTX will abandon the restart of the exchange during the hearing, FTT quickly plummeted from around $3 to $2.29 within 10 minutes, with a short-term decline of over 25%. At the time of writing, it has slightly rebounded to $2.31, still down 14.9% in the past 24 hours.
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FTT trend. Image source: CoinGecko
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