Newton Gitonga
The insolvent crypto exchange will start repaying its creditors tomorrow, February 18.
The initial disbursement will prioritize “Convenience Class” creditors, who claim $50K or less.
FTX distributions finally start this week 👇
Meanwhile, attention has switched to the exchange’s native token amidst the developments.
FTT displays a bullish stance as it surpassed a crucial resistance, targeting another 35% jump.
FTX to start creditor repayments
The insolvent trading company will begin compensating creditors tomorrow, February 18.
Convenience Class creditors (claiming less than $50K) will receive a full refund and an additional 9% yearly interest accumulated since FTX’s collapse in 2022.
FTX revealed plans to liquidate assets and compensate after deciding not to re-launch the exchange early last year.
Thus, it has collaborated with Kraken and BitGo to facilitate the refunds.
Users should receive their payments within three business days after release.
Meanwhile, creditors should adhere to KYC policies and submit tax certificates to qualify for compensation.
Individuals who miss the deadline will wait for future distributions.
Creditors claiming more than $50K will start receiving reimburses in the second quarter of 2025.
The company plans to distribute approximately $17 billion, with $7 billion distributed during the initial phase.
Meanwhile, this represents a crucial milestone for FTX’s restructuring plans that began in January.
Potential market impact
The native token’s actions will depend on creditors’ decisions after the compensations.
The market will likely endure a selling pressure if these individuals decide to dump.
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.
The compensations could signal an end of the exchange’s bankruptcy narrative, potentially renewing trust in FTX-linked projects.
Such trends might attract more buyers to FTT, propelling the token’s growth and price.
Furthermore, FTX’s repayments mean injecting billions into the crypto market, which would massively boost liquidity.
FTT’s current price outlook
While the crypto market battled volatility as Bitcoin stayed around $97K, FTX Token traded in the green.
FTT trades at $2.24 after gaining over 3% on its 24-hour chart.
The alt jumped past the $1.9 resistance, signaling extended surges.
The alt has opened the past to $3 after breaching a falling triangle setup on its 4H timeframe.
FTT has tested the pattern’s upper trendline since January 2025 before the latest breakout.
Surges to $3 would mean a nearly 35% gain from the altcoin’s current price.
Rose expects 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 the resistance breakout, suggesting an equal momentum from bears and bulls.
Thus, FTT exhibits significant volatility and an indecisive market structure.
Further, the token has been without use cases since the exchange went offline.
Intensified optimism amid the highly-awaited disbursements fueled FTT’s prevailing recovery.
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