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- FTX will start paying out creditors on January 3, in agreement with BitGo and Kraken, according to an official announcement.
- Bonk, Fantom, Jupiter, Raydium and Solana all rise on Thursday, before the FTX payout begins.
- Experts believe that repayments to creditors could bring fresh money into the market, which would likely add to the buying pressure of crypto tokens.
The FTX exchange should start paying off its creditors on Friday. The bankrupt stock exchange should begin repaying up to $16.5 billion in assets recovered after the entity’s collapse.
United States Bankruptcy Judge John Dorsey approved the plan at a court hearing, and FTX is expected to return 98% of its clients who had $50,000 or less in the exchange, via BitGo and Kraken.
Ahead of an infusion of fresh capital into the crypto market, altcoins Bonk (BONK), Fantom (FTM), Jupiter (JUP), Raydium (RAY), and Solana (SOL) are all rising on Thursday.
The repayment to the FTX creditor starts on Friday
Most creditors of the FTX Exchange in bankruptcy will receive between 98% and 119% of the value of their claims. Claims under $50,000 will be prioritized, with BitGo and Kraken handling payments to creditors.
The exchange first filed for bankruptcy in November 2022 with an estimated debt of $11.2 billion. Payouts are expected to total up to $16.5 billion, as the stock market raises additional funds through asset sales and investments in technology companies.
Edwin Mata, CEO of Brickken, said in an exclusive interview with FXStreet:
“We have to consider that people who have lost their money have to cover their losses; they are unlikely to invest again. There is fresh money for those who are in surplus, they can reinvest (in the crypto market). Even so, there is fresh cash coming into the markets and that is always good.”
Dario Lo Buglio, CTO of Brickken, believes that in the long run, repaying the creditor makes no difference. “In the long run, it doesn’t make any difference. We can take the opposite side and remember Mt.Gox and how it didn’t have much impact on the price of Bitcoin in the long run,” Lo Buglio told FXStreet.
These altcoins are rising ahead of FTX repayments
Bonk (BONK), Fantom (FTM), Jupiter (JUP), Raydium (RAY), and Solana (SOL) Rally Ahead of Chapter 11 Reorganization The five altcoins posted gains of between 3% and 9% on Thursday, rising in anticipation capital infusions and buying pressure on exchanges as repayments to creditors begin on Friday.
On Thursday:
BONK: 8%
FTM: 2.77%
YES: 6.74%
AIR: 8.94%
SALT: 7.12%
Solana breached the key $200 threshold on Thursday, climbing to a high of $209.49 before correcting to $208 at the time of writing. The key drivers of the gains in altcoins are Bitcoin’s recovery above $96,000 and the increase in confidence among traders, which is evident from the rising market capitalization, as seen on CoinGeck.
The crypto market capitalization climbed above $3.55 trillion on Thursday, with Bitcoin and altcoins rallying across the market.
