As the year draws to a close, an important development is emerging since the collapse of defunct cryptocurrency exchange FTX, which was once led by convicted founder Sam Bankman-Fried. After months of anticipation, there are signs that payouts to FTX customers affected by the exchange’s collapse over the past two years are very close.
$16 Billion in Cash Set for Distribution
Market expert MartyParty recently highlighted this progress, refers to “real testimonials from real FTX customers for real purposes.”
In a posted on the social network X (formerly Twitter), one user shared his experience, saying that he was able to withdraw most of his assets before the FTX bankruptcy, leaving only “a small amount of Chainlink” in the exchange.
This user indicated that he received an email regarding tax requirements, indicating the final step before distribution. The person noted that he would now accept $289, expressing his 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 about to be completed. However, the user’s disclosure does not only shed light on the exchange’s intentions for distribution paymentsbut it also suggests a possible trend among other lenders.
Many affected users may follow suit and reinvest their money in withdrawals from cryptocurrencies, especially Bitcoin or other major assets in the ecosystem.
For example, crypto researcher Xremlin had it mentioned earlier that a significant portion of the $16 billion set aside for distribution will flow back into the crypto market, serving as a catalyst for growth as the year draws to a close.
Xremlin emphasized the importance of this distribution, pointing out that it is a return of money to people who are already involved in the crypto space. It is expected that many recipients will reinvest their payments, especially in Bitcoin as well Blame each othercreating significant buying pressure.
Analysts Predict Market Rise As FTX Payment Method
The source of this large cash injection can be traced back to FTX’s agreements with US government agencies, where assets obtained through misappropriation of client funds were liquidated. These assets include investments in cryptocurrencies, technology companies, venture capital, and real estate.
Analyst Miles Deutscher is also optimistic about the upcoming payment of $16 billion to FTX’s creditors. He notes that, unlike previous withdrawals related to the returns of Mt. Gox, these upcoming payments could inject money into the market.
The analyst assesses that many users are likely to reinvest their money, which may stimulate market activity leading to an increase in prices in the broader market.
Finally, MartyParty too you believe that this distribution will have a bullish effect on the broader cryptocurrency market. He expects that the distribution of 16 billion dollars by FTX, which is expected to start in two weeks, will also bring significant money back into the crypto ecosystem.
At the time of writing, the exchange’s native token, FTT, is trading at $1.35, up 1.4% in the past 24 hours and over 8% in the past week alone.
Featured image from DALL-E, chart from TradingView.com