FTX Token (FTT), the cryptocurrency associated with the bankrupt exchange FTX, experienced a significant price surge on September 29, climbing over 70% to reach $2.70.
FTX Token (FTT), the cryptocurrency associated with the bankrupt exchange FTX, experienced a significant price surge on September 29, climbing over 70% to reach $2.70.
This marked its highest value since March 2024. Prior to the spike, FTT had been trading around $1.40 for most of the month.
The recent rally has been fueled by rumors circulating on social media that the FTX bankruptcy estate would begin distributing reimbursement funds to creditors and customers on September 30.
However, it is important to note that the official Chapter 11 bankruptcy plan has not yet received court approval. A hearing to consider the plan is scheduled for October 7.
Following the initial spike, FTT's price corrected, trading at approximately $2.10 on September 30. Despite this decline, it still represented a 30% increase over the previous 24 hours. The volatility in FTT's price underscores the uncertainty surrounding the ongoing bankruptcy proceedings.
If the bankruptcy plan is approved, the FTX trustee intends to begin distributing funds to creditors with claims under $50,000 by the end of 2024.
Conversely, creditors with larger claims may have to wait until the first or second quarter of 2025 to see any distributions.
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