FTX Begins Creditor Repayments: A New Dawn for FTT
1min read FTX, the once-thriving cryptocurrency exchange, is set to begin creditor repayments this week, marking a significant milestone in its restructuring process. The insolvent company will commence compensating creditors on February 18, with Convenience Class creditors (claiming less than $50K) receiving a full refund and an additional 9% yearly interest accumulated since FTX's collapse in 2022.
FTX has collaborated with Kraken and BitGo to facilitate the refunds, ensuring users receive their payments within three business days after release. Creditors must adhere to KYC policies and submit tax certificates to qualify for compensation. Those who miss the deadline will wait for future distributions, while creditors claiming more than $50K will start receiving reimbursements in the second quarter of 2025.
The company plans to distribute approximately $17 billion, with $7 billion distributed during the initial phase. This represents a crucial milestone for FTX's restructuring plans that began in January. The native token, FTT, has displayed a bullish stance, surpassing a crucial resistance and targeting another 35% jump.
The market's reaction to the compensations will depend on creditors' decisions. If they decide to dump their tokens, the market may endure selling pressure. However, FTT might not experience sudden selling pressure as the exchange will likely use cash for compensation. Experts believe FTX's repayments could be bullish for the market, signaling an end to the exchange's bankruptcy narrative and potentially renewing trust in FTX-linked projects.
FTT's current price outlook shows the altcoin trading in the green, with a price of $2.24 after gaining over 3% on its 24-hour chart. The altcoin has jumped past the $1.9 resistance, signaling extended surges. FTT has opened the past to $3 after breaching a falling triangle setup on its 4H timeframe. Surges to $3 would mean a nearly 35% gain from the altcoin's current price.
Analysts expect continued upswings to $4.8 upon decisive breakout confirmations. However, overcoming the key obstacle at $2.5 is crucial for the anticipated surge. Losing $1.9 will push the token into the descending pattern again, triggering extended declines or consolidations. FTT consolidates after 
