- FTX will begin $16 billion in creditor repayments on February 18th.
- The repayments will be based on values from November 2022.
- FTX Token (FTT) soared a massive 8.4% in the past 24 hours.
Nearly two years since its collapse in November 2022, the now-defunct crypto exchange FTX will begin its much-awaited creditor repayments starting February 18th. And so now, crypto market watchers are wondering if this move could really shake up digital assets, given the sheer size of the payouts.
Creditors Balk at “Lowball” Repayment Values
According to official documents making the rounds on X (formerly Twitter), a substantial $16 billion will be repaid to creditors.
However, only around $6.5-$7 billion will go out in the first phase, with the rest coming later. Importantly, the payouts will be based on the prices of digital assets back in November 2022.
Market watchers have expressed strong dissatisfaction with FTX’s repayment plans because back when FTX went under, Bitcoin was trading between $16,000 and $21,000. Right now, the top digital currency is sitting at $97,000 with an all-time high of $109,000 seen about 22 days ago, data from CoinMarketCap confirms.
“Convenience Class” Gets Paid First, But at 2022 Prices
An earlier report pointed out that FTX will prioritize repayments to the “convenience classes,” meaning people with losses less than $50,000 from the exchange’s debacle.
Related: Bankman-Fried Seeks Trump Pardon, LayerZero Settles with FTX Estate
Still, market participants are unhappy. Why? Because a $50,000 investment in BTC in November 2022 would now be worth a total of $303K!
FTT Token Reacts to Repayment News
Ahead of the upcoming repayments, the FTX Token (FTT) jumped a significant 8.4% in the past day and is trading at $2.08, as per CoinGecko data.
Following the implosion of FTX, FTT dropped to an all-time low of $0.7768 in June 2023 but is up 166.6% since that time.
FTT Chart Hints at Bullish Momentum
As you see from the chart, the RSI is currently at 46.91 for FTT, suggesting that buyers are quickly getting the upper hand over sellers.
Related: FTX Token (FTT) Price Prediction 2025-2030: Will FTT Price Hit $10 Soon?
The upward slope of the line suggests that higher prices are coming as FTT attempts to break back above the 20-day Exponential Moving Average (EMA). The 20-day EMA is a major hurdle for the altcoin.
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