FTX‘s bankruptcy plan approved by the court is on the agenda with payments to be made to creditors. However, this may not have the expected big impact on the cryptocurrency market immediately. The latest report from Presto Labs reveals that investors are a little too excited about this. Because it is not entirely clear whether FTX’s approximately $16 billion payment will return to the market immediately.
It is Uncertain Whether Assets Will Return to the Cryptocurrency Market
In total, FTX plans to distribute between $14.7 billion and $16.5 billion in assets to its creditors. The management that took office after the bankruptcy has been making preparations for this for a long time. But Presto Labsis skeptical that these assets will flow directly into the cryptocurrency market, contrary to general expectation.
The report emphasizes that a comprehensive analysis has not yet been made on who the creditors are and how they will evaluate these assets. So, it is unclear how much of this amount will return to crypto after the payments are made. When this is the case cryptocurrency marketIt is not possible to say anything definitively about whether the company will benefit greatly in the short term from this payment.
When Do Payments Start?
FTX’s payment process will begin 60 days after the plan “officially goes into effect.” However, this date is still not clear. Due to this uncertainty, it does not seem realistic to expect the cryptocurrency market to revive in the near future.
As the report published by Presto Labs reveals, some market observers believe that this situation will continue even if payments start today. cryptocurrency For now, it is unlikely that it will create a big movement in the market in the short term. Because nothing is clear about the process and it is entirely up to the creditors how they will evaluate their assets.
FTX bankruptcy plan Although there is a great expectation in the market regarding the payments to be made within the framework, it is unclear for now how this money will return to the market and what its impact will be.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
