$16 Billion Distribution to Begin January 2025
The crypto world is heating up FTX, the collapsed cryptocurrency exchangePrepare to repay $16 billion to customers and creditors starting on January 3, 2025. The repayment marks an important milestone in FTX’s efforts to rebuild trust in the crypto industry after its shocking collapse in 2022.
FTX’s repayment plan was approved in October, with customers with claims under $50,000 being the first to receive payments. Notably, under the plan, they will make smaller repayments first, followed by larger repayments later in 2025. The company plans to refund customers 98% of their losses, with many returning as much as 119% of the purported account value.
FTX CEO John J. Ray III expressed confidence in the plan, saying:
“We are ready to begin distributing recoveries to all customers and creditors.”
Boosting the Cryptocurrency Market
The massive $16 billion repayment could boost cryptocurrency market. Many creditors are experienced cryptocurrency investors who may reinvest their funds in digital assets such as Bitcoin and Ethereum, driving up demand and pushing prices higher. Historically, cryptocurrency markets have only recovered following a massive correction or liquidity inflow under the current circumstances, which is the perfect time for a bull rally.
The timing is perfect for the market as Bitcoin has Breaking through $100,000 this year,Depend on Spot Bitcoin ETF approved and Bitcoin Halving. While customers will get back more than they lose, repayments are based on November 2022, when Bitcoin was trading at just $17,000. With Bitcoin trading at $93,000, many recipients may be reinvesting their funds to make up for the gains they missed.
In addition, FTX has partnered with well-known cryptocurrency companies Kraken and BitGo to handle repayments. Their participation shows how far the crypto industry has come in terms of reliability and infrastructure, which is a positive sign for investors looking for market stability.
A new beginning for cryptocurrency
FTX’s repayment is more than just a number, it’s also a move to restore investor confidence in the company. So what strategy will FTX creditors adopt to sell, buy or hold? Currently, Bitcoin is getting crazy support from institutions and it seems to be building buying pressure rather than selling. Historically, this trend has been bullish for Bitcoin. After this redistribution, Bitcoin is expected to rise. The coin will rise back to the $100,000 mark.
