This is a major development in the crypto industry. FTX exchange, which was founded by a group of cryptocurrency enthusiasts, has launched FTX. collapsed Under the leadership of Sam Bankman Fried (convicted), in November 2022 is set to distribute an astounding $16 billion cash to their customers. This will lead to a significant increase in Bitcoin’s (BTC) or Solana’s (SOL) price.
Crypto analyst Xremlin predicted that a significant portion of these funds will be redirected back to the cryptocurrency market by the end of 2018. This cash is expected to serve as a growth catalyst.
FTX $16 Billion Cash Injection
It is not a recent social media postXremlin emphasized that this distribution was significant, stating that $16 billion would be returned in cash to people already active in the crypto world.
Xremlin thinks that a substantial portion of these funds will be reinvested into the market. Specifically, this money would go to purchase various tokens including Bitcoin and Solana. This, in turn, creates significant pressure on prices and a demand for Bitcoin.
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This massive infusion of cash can be traced to FTX agreement Assets acquired through misappropriated funds from customers were sold to US Government agencies. Assets included real estate, technology companies, venture fund investments, and cryptocurrency.
After selling shares of AI startup Anthropic in which FTX invested $500m, it found cash in the amount of $6.4billion. The amount includes both assets owned by FTX and those controlled by a third party. debtors and liquidators.
FTX’s bankruptcy filing in November 2022 led to a drop in cryptocurrency prices. This has caused some dissatisfaction with the distribution.
The current market value for Ethereum (ETH) is around $29,000. However, those who hold 10 ETH native tokens in their account will get approximately $12,000 cash. This amount is significantly less than the $29,000 asset currently worth.
In spite of objections, the Court has approved the creditor vote liquidation planThe plan is implemented only after the final approval of the court if it receives the needed number votes.
Buying Frenzy For Bitcoins, Ethereums, and Solanas?
Watch for key dates in the future, including August 16th 2024. This is when FTX will be implemented. customers to vote On the bankruptcy wind down payments and on October 7, 2024 when Judge John Dorsey considers approving the FTX bankrupt plan.
Clients can look forward to receiving payouts by the third quarter of the year if the plan is approved. This could provide much needed liquidity for token purchase. The timing of this plan coincides with US elections which may increase market volatility.
FTX payments could be a factor that fuels a bullish movement in the cryptocurrency market, which is currently experiencing significant price drops.
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Bitcoin’s price has dropped by over 21% at the other end of the market in the last month, dropping from $71,000 up to the current $56,400. Meanwhile, Solana BTC has lost 22% in the same period, and is currently at $134.
It is also expected that, despite the recent sales pressure, the US government and German government will continue to exert their influence throughout the remainder the year. cash injection From FTX investors to crypto-investors could help reduce the expected sales pressure.
Researchers point out that a substantial portion of funds will flow into cryptocurrencies, as most FTX clients are crypto retail investors. Bitcoin, Ethereum, Solana, and other cryptocurrencies are most likely to see the greatest liquidity.
Chart from TradingView.com, image is from DALL.E
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Source: www.newsbtc.com
