With all eyes on the upcoming fund disbursements, the FTX Token has dominated this year’s cryptocurrency market. With a 245% increase from its September lows, FTX Token’s market valuation reached over $1.1 billion on Monday as it traded at $3.50. These gains may continue into January as the Bankruptcy Payouts case against FTX nears its conclusion. The next step is to pay out creditors and customers a total of more than $16 billion.
FTX Estate Plan Approved Dividends Expected in March
The FTX Estate announced in the middle of December that a Chapter 11 reorganization plan was accepted by a U.S. court and was scheduled to take effect on January 3, 2023. We anticipate initial dividends sixty days after that date, and creditors can begin making claims on that day.
BitGo and Kraken are important intermediaries that FTX Estate has chosen because they are both top Crypto custodians. FTX Estate may consider bringing on additional partners to manage the massive distribution. The recent FTT rise is partly due to the increasing interest in these events.
Bankman Fried Sentenced Salame’s Term Shortened
After allegations of fund commingling came to light in 2022, FTX—once valued at $30 billion—collapsed, making it one of the biggest centralized cryptocurrency exchanges in the world. The court has since handed Sam Bankman-Fried a 25-year prison term. Our investigation indicates that Ryan Salame, a top executive at the corporation, could be lowered by more than one year, notwithstanding his original sentence of 7.5 years. Cooperation with prosecutors resulted in Caroline Elision’s two-year prison term.
Bullish Momentum Double-Top Risk
Bankruptcy Payouts Since July’s low of $1.013 on the daily chart, FTT has been strongly trending upwards. Finally, it has reached the 50% Fibonacci level of retracement. After forming a bullish golden cross pattern on October 7, FTT has remained above its 50-day and 200-day moving averages.
But a double-top pattern starts taking shape at $4.31, with a $2.50 neckline supporting. A double-top reversal pattern may indicate a possible price pullback as market players factor in distributions. If FTT breaks out over $4.31 resistance, it could make further gains to its all-time high of $5.95 in 2023, 75% higher than its current level. We can no longer say prices will rise if they fall below the $3 support level.
FAQs
What is the FTX Estate plan and how does it affect FTX Token?
The FTX Estate's Chapter 11 reorganization plan, approved in December, will lead to fund disbursements to creditors, contributing to the recent rise in FTX Token's price.
When are the dividends expected to be paid?
Initial dividends are expected to be paid approximately 60 days after January 3, 2023, with creditors being able to make claims starting from that date.
Who are the key intermediaries managing the distribution?
BitGo and Kraken are handling the distribution, with potential additional partners being considered.
What happened to Sam Bankman-Fried and other executives?
Sam Bankman-Fried was sentenced to 25 years in prison for his role in the collapse of FTX, while Ryan Salame's sentence has been shortened, and Caroline Elison received a two-year prison term.
