FTT pulls the market again, but FTX creditors can still make money?

On May 8, FTX and its associated debtors submitted a reorganization plan and disclosure statement to the U.S. Bankruptcy Court in Delaware. The plan is expected to concentrate distribution to customers and other creditors around the world when FTX goes bankrupt in November 2022. of almost all assets.

After experiencing the dark era of FTX thunderstorms, "full compensation" may be the word that creditors are most eager to hear. Affected by this, FTX platform currency FTT experienced a pull-up trend, rising all the way to exceed $2.1, with a 24-hour increase of 19.16%.

FTX restarts, creditors will get back 118% after 60 days

When FTX declares bankruptcy, creditors will face a lengthy bankruptcy process in court, and There is no guarantee of what proportion of the debt will be compensated.

Calculating the exact timing and value of debt transactions has been complicated since FTX filed for Chapter 11 bankruptcy in the District Court of Delaware on November 11, 2022. Industry traders told Fortune that some debt transactions were conducted on online platforms, while others were private transactions where buyers were not required to submit transfer applications immediately, creating delays, while some debt transactions were simply reported as their own claims.

Most creditors want to get at least some of their money back, so without certainty as to how the deal will cover their capital exposure, some creditors may sell their claims at a low price, with the buyer's loss determined by bankruptcy administration How much debt can one recover.

Related reading: "Betting on FTX's bankruptcy claims, he made $25 million"

As of March 28, there have been 49 transactions on the industry's major online trading platform Claims Market Claims worth more than $439 million were exchanged. Meanwhile, hedge funds have purchased more than $2.3 billion worth of deeply discounted claims, according to court records as of March 20.

FTX expects the total value of properties collected, converted to cash and available for distribution to be between $14.5 billion and $16.3 billion. This amount includes assets controlled by the Chapter 11 Debtors as well as assets controlled by FTX Digital Markets, Ltd. (The Bahamas) Joint Official Liquidators, the Bahamas Securities Commission, FTX Australia Joint Official Liquidators,

That is, if The reorganization plan was approved by the bankruptcy court and 98% of FTX's creditors will receive approximately 118% of their allowed claims within 60 days of the plan's effectiveness. Remaining creditors will receive all of their claims "plus billions of dollars in compensation for the time value of their investments."

Bitcoin and SOL are the saviors

The "rebirth" of FTX can be said to be largely due to the surge in Bitcoin and SOL.

According to data submitted in the FTX case report, FTX’s legacy includes approximately 59 million SOL and 21,482 Bitcoins. The tokens are up about 1,000% and 343%, respectively, since the company filed for bankruptcy. FTX will sell 41 million SOL to institutional investors at a price 68% below the current market price, which is worth approximately $6 billion at the time of publication.

Have Bitcoin haters anticipated the “Bitcoin bull market”?

In the eyes of SBF, Bitcoin has no future as a payment network and criticizes Bitcoin for its inefficiency and high environmental costs. He once said, "The Bitcoin network is not a payment network, nor an expansion network." Perhaps it is well known that SBF hates Bitcoin. Cathie Wood, CEO of Ark Invest, once said on her social platform, "SBF does not like Bitcoin because Bitcoin is transparent and decentralized, and SBF cannot control Bitcoin.”

##The crypto winter has lasted for nearly a year since SBF was arrested and imprisoned. However, in anticipation of Bitcoin halving and ETFs, speculation has gradually increased. On January 11, the Bitcoin ETF was successfully approved, opening a new chapter for the encryption industry, and a large amount of funds entered the Bitcoin ecosystem through ETFs. Apart from the meme carnival, Bitcoin has gone from inscriptions to runes to L2 in full bloom, which can be described as the "Bitcoin Bull Market".

Even though SBF hates Bitcoin, he does not deny the material value of Bitcoin and still trades Bitcoin to make profits from the perspective of an investor. According to data submitted in the FTX case report, FTX still held tens of thousands of Bitcoins when FTX declared bankruptcy. Bitcoin has reached record highs step by step in this round of bull market hype. Although there have been multiple corrections, most researchers still maintain confidence in its future.

SBF may not have witnessed this historical moment in prison, but it is undeniable that it was Bitcoin, which he once criticized, that once again injected funds into the crypto world.

Investors who choose each other with SOL

During the period when Bitcoin became the leader, SOL was also a target that cannot be ignored, and the relationship between FTX and Solana can be described as a period in the crypto circle. Good story.

Solana has never been a team born with a silver spoon in its mouth. After the end of the validator node fundraising in 2019, Anatoly and Raj insisted on focusing on development and getting on the mainnet first, and this move attracted SBF of attention. At that time, SBF was looking for cooperative public chains. Among the well-known public chains, Solana may not be outstanding, but one thing made SBF decide to invest deeply in Solana.

After SBF learned about Solana with Anatoly and Raj, he immediately asked engineers to send a large number of spam transaction attacks to Solana to test the performance of the Solana public chain. Solana resisted this challenge, and SBF decided to invest in Solana that day. A few days later, the design of Serum, a decentralized order book matching engine incubated by FTX, was born.

Related reading: "The Ups and Downs of Solana: Many Chances and a Little Necessity"

It can be said that the mutual choice of FTX and Solana has created each other, and SBF is naturally a loyal investor of SOL. SBF believes that Solana may become the next Bitcoin. Solana’s market value may exceed Ethereum. There are not many blockchains that can be compared with Solana. “Solana is one of the few public blockchains with a truly reasonable roadmap. The ability to scale to millions of transactions per second for just pennies per transaction is the scale advantage users need.”

After FTX declared bankruptcy, the Solana public chain was also hit hard and fell into trouble, and the price of SOL plummeted. However, Solana still attracts countless users to invest due to its high performance and low gas. Especially since the low-meme craze broke out last year, the price of SOL currency exceeded three digits and broke all-time highs many times.

Since being detained last summer, SBF has still been "in love" with Solana even in prison, and even "recommended investing in SOL to the prison guards" on the Internet. Although SOL has also experienced retracements during several market corrections, it has still maintained a three-digit price so far, which is enough to earn huge profits for FTX.

Now, SBF has been convicted on all seven counts. He was eventually sentenced to 25 years in prison by the U.S. Manhattan Court and issued a sky-high fine of $11 billion. The FTX chapter led by this legendary figure has finally come to an end. The reorganized FTX may open a new chapter after fully paying creditors, but in the face of recent regulatory tightening, it remains to be determined whether FTX's restructuring proposal can be passed.

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