FTX is set to distribute $16 billion in cash to customers, a payout that could spark rallies in Bitcoin and Solana.
According to crypto researcher Xremlin, most customers will buy back into crypto with cash.
Critical dates for the repayment plan include 16 August and 7 October, which will coincide with the US elections and the start of the final phase of the bull run.
A bullish wave is coming for Bitcoin and Solana, and everyone should be prepared.
This wave is set to come from FTX, two years after its collapse in November 2022, under the leadership of Sam Bankman Fried.
The crypto exchange is now gearing up to distribute a staggering $16 billion in cash to its customers, which will inject fresh liquidity into the crypto market and help the prices of Bitcoin and Solana in particular.
This is set to happen at the end of the year, and here's everything to know.
According to a recent Twitter Post, crypto researcher Xremlin highlighted the incoming $16 billion distribution: "Turned bearish today? Think again”
According to Xremlin, most investors will consider reinvesting this money and buying several kinds of tokens, including Bitcoin, Ethereum and Solana.
This massive inflow of fresh liquidity is set to cause significant price growth for these cryptocurrencies and just might be one of the major catalysts of the incoming bull run.
But where did all this money come from?
Most of the $16 billion stack can be traced back to the FTX agreement with US government agencies, where all of the assets Sam Bankman-Fried and other FTX executives bought with stolen customer funds were sold, including crypto, tech company stock, venture funds and real estate.
Around $6.4 billion of this money came from the sale of Anthropic shares, where FTX had previously invested $500 million and cashed in several times its original investment.
However, some consumers have expressed dissatisfaction with the $16 billion payout, considering how it is based on lower crypto values from when the company first filed for bankruptcy.
For example, if a client had 1 Bitcoin in their wallets at the time of the crash, they’d receive around $20,000 now, which would be far less than $55,000 (considering Bitcoin’s current value of $55,000).
Despite investor objections, however, the court has approved voting on the repayment plan, and if the $16 billion proposal passes, the plan will be implemented.
Some of the key dates to keep in mind for further developments in the sales and distribution of these tokens include:
16 August 2024, which marks the deadline for FTX customers to vote on the repayment plan, and 7 October 2024, when the judge will consider approving the repayment plan altogether.
If the judge approves the payment plans, customers can expect to start receiving their funds by the end of the third quarter of the year, which aligns perfectly with the much-anticipated market volatility at the end of 2024.
Overall, Bitcoin, Ethereum, and Solana have fallen significantly from their yearly highs, and we might need this repayment plan to complete the final phase of the ongoing crypto bull run.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.