FTX Crypto Exchange Payouts to Creditors Expected to Boost Market
Analysts at K33 company suggest that the expected payouts to FTX crypto exchange creditors may have a positive impact on the market. It is expected that FTX clients will start receiving payments by the end of the year, which could lead to «buyer pressure» and trigger a bullish trend in financial markets.
High Payout Amounts Set FTX Apart from Other Cryptocurrency Companies
According to FTX’s compensation plan, the total amount of payouts to creditors ranges from $14.5 billion to $16.3 billion. This is significantly higher compared to compensations from other major cryptocurrency companies like Mt.Gox and Gemini. For example, Mt.Gox’s debts amount to $8.9 billion, with the final payout scheduled for October, while Gemini will pay out $1.7 billion in June 2024.
Debate Over Compensation Plan Amidst Positive Market Impact Expectations
K33 emphasizes that not all compensations under FTX liquidation will have bearish implications. They suggest that fiat payouts, as opposed to cryptocurrency compensations, could create positive «buyer pressure» on the market, contributing to price increases. However, the compensation plan is not without criticism. Sunil Kavuri, a representative of a group of activist creditors of FTX, expressed dissatisfaction with the current plan, believing that it limits creditors’ rights and absolves some former company executives of responsibility. To approve the compensation plan, consent from over half of FTX creditors is required. It is expected that a vote on this issue will take place in June.
Historic Whitam Abbey Building Sale to Aid FTX Creditors
In addition, to improve the financial position of creditors, the historic Whitam Abbey building located near Oxford has been put up for sale. Its sale could help satisfy FTX creditors’ demands, as its value is 15 million pounds (approximately $19 million).
