The end of the year is coming with significant developments in the wake of the collapse of cryptocurrency exchange FTX, once run by convicted founder Sam Bankman-Fried. After months of waiting, there are signs that payouts for FTX customers affected by the exchange’s collapse two years ago are finally on the horizon.
$16 billion in cash available for distribution
MartyParty’s market expert recently illuminated this progress, referring to “real evidence from real FTX customers regarding real intentions.”
IN fasting On the social media platform X (formerly Twitter), one user shared his experience, stating that he managed to withdraw most of his assets before FTX went bankrupt, leaving only a “small amount of Chainlink” on the exchange.
This user revealed that they received an email regarding tax requirements, signaling the final step before distribution. The person noted that they were now set to receive $289, expressing their intention to reinvest in Bitcoin, calling it “free money.”
MartyParty responded to the user’s post, indicating that the long-awaited distribution of funds is nearing completion. However, the user’s revelation not only sheds lightweight on the exchange’s intentions regarding the distribution withdrawalsbut it also indicates a possible trend among other creditors.
Many affected users may follow suit and invest their payouts in cryptocurrencies, especially Bitcoin or other crucial assets in the ecosystem.
For example, cryptocurrency researcher Xremlin had previously found that a significant portion of the $16 billion earmarked for distribution will return to the cryptocurrency market, acting as a catalyst for growth towards the end of the year.
Xremlin emphasized the importance of this distribution, pointing out that it is a return of funds to those already involved in the cryptocurrency space. Many recipients are expected to reinvest their withdrawals, especially in Bitcoin and Solanumwhich creates significant purchasing pressure.
Analysts predict market growth as FTX payouts approach
The origins of this significant cash injection can be traced to FTX’s contracts with U.S. government agencies, where assets acquired with misappropriated client funds were liquidated. These assets include investments in cryptocurrencies, technology companies, venture capital funds, and real estate.
Analyst Miles Deutscher also shares an bullish outlook regarding FTX’s upcoming $16 billion repayment to creditors. notes that unlike the previous cash outflow associated with Mt. Gox returns, these upcoming payouts could infuse liquidity into the market.
The analyst estimates that many users will likely reinvest their capital, which could further spur market activity and lead to further price increases in the broader market.
Ultimately MartyParty too he believes that this distribution will have a bullish effect on the broader cryptocurrency market. He predicts that FTX’s $16 billion distribution, which is expected to begin in two weeks, will inject significant liquidity into the cryptocurrency ecosystem.
At the time of writing, the exchange’s native token, FTT, is trading at $1.35, up 1.4% in the last 24 hours and over 8% in the last week.
Featured image from DALL-E, chart from TradingView.com
