FTX’s native cryptocurrency FTT saw a dramatic price increase, jumping over 70% to $2.70, its highest level since March 2024.
This rally occurred as speculation spread on social media that FTX, currently in bankruptcy, would begin distributing funds to creditors and customers.
FTT was trading around $1.40 for much of last month before the spike. However, it then fell to around $2.10, still up around 30% in the past 24 hours, according to CoinGecko data.
The sudden bullish action in the TTF follows rumors that the FTX bankruptcy estate reimbursements would begin on September 30. However, official court documents from the Chapter 11 proceedings show that the bankruptcy plan has not yet been approved, with a court hearing scheduled for October 7. If approved, distributions to creditors with claims under $50,000 could begin by the end of 2024, while larger claims may not be paid until 2025.
The rise in FTT comes after a sharp decline following the collapse of FTX in November 2022. At its peak in 2021, FTT reached almost $80, but after The implosion of FTXthe token fell below $2 and has been trading at that level ever since. The crash accelerated when Binance, one of the largest holders of FTT, sold its entire position in FTX for risk management purposes.
As of September 30, there were approximately 30,600 FTT holders, with the token’s market capitalization standing at approximately $330 million. FTT was excluded from FTX’s repayment plan in July 2024 due to its “stock-like characteristics”, further complicating its future amid bankruptcy proceedings.
FTX’s restructuring administrator revealed that more than 94% of its Dotcom clients voted in favor of the company’s reorganization plan.
Kroll Restructuring Administration, charged with managing the voting process, reported Monday that nearly all classes of creditors chose to “accept” the plan, with two classes deemed to have approved it even though they did not return their ballots. voting. Specifically, 94.48% of creditors in the “dotcom customer rights claims” category – representing claims worth approximately $6.83 billion – voted to approve the plan.
In the “U.S. customer rights claims” category, nearly 89.1% of creditors, representing $60.99 million in claims, also supported the reorganization. Additionally, 95.88% of creditors in the “dotcom convenience claims” category, representing $223.59 million, voted in favor.
The reorganization plan is expected to return at least 118% of the value of the claims to 98% of the creditors, based on the value of the cryptocurrencies involved at the time of the assessment of the claims. The plan confirmation hearing is scheduled for October 7.
In August, at the end of the vote, The FTX Restructuring Team reported overwhelming support from creditors, with more than two-thirds of requested claims participating in the process.