Crypto Hotshots 2022 🔥♨️

Twitter Instagram Facebook Facebook Linkedin Youtube Spotify Medium Reddit Telegram
Voice of Crypto
  • VOC Explained
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Press Release
    • Sponsored
    • Global Crypto Events
  • Services
    • Content Marketing Services
    • Crypto Influencer Marketing
    • Advertise With Us
  • Know Us
    • About Us
    • VOC Team
    • VOC Vigilantes
    • Brands Who Trust Us
    • Contact Us
Reading: FTX (FTT) Price Follows Bearish Trend, Bigger Crash Incoming?
Share
  • bitcoinBitcoin(BTC)$28,501.00
  • ethereumEthereum(ETH)$1,823.45
  • tetherTether(USDT)$1.00
  • binancecoinBNB(BNB)$316.19
  • usd-coinUSD Coin(USDC)$1.00
  • rippleXRP(XRP)$0.52
  • cardanoCardano(ADA)$0.389184
  • dogecoinDogecoin(DOGE)$0.084431
  • staked-etherLido Staked Ether(STETH)$1,819.34
  • matic-networkPolygon(MATIC)$1.11
  • Events
  • Videos
  • Podcast
Voice of CryptoVoice of Crypto
Aa
  • VOC Explained
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Press Release
  • Services
  • Know Us
Search
  • VOC Explained
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Press Release
    • Sponsored
    • Global Crypto Events
  • Services
    • Content Marketing Services
    • Crypto Influencer Marketing
    • Advertise With Us
  • Know Us
    • About Us
    • VOC Team
    • VOC Vigilantes
    • Brands Who Trust Us
    • Contact Us
Follow US
Copyright © 2023 Voice of Crypto. All Rights Reserved
Voice of Crypto > News > FTX (FTT) Price Follows Bearish Trend, Bigger Crash Incoming?
News

FTX (FTT) Price Follows Bearish Trend, Bigger Crash Incoming?

Adekunle Joshua
Last updated: 2023/03/14 at 12:11 PM
Adekunle Joshua Published November 21, 2022 March 14, 2023
Share
FTX-COIN-1102x570-1

Key Insights

  • The cryptocurrency exchange FTX has revealed that it now owes its 50 largest creditors close to $3.1 billion.
  • The filing revealed the loss exchange’s clients could incur, even though it withheld the parties’ names.
  • According to Earl, releasing the crypto assets from FTX and determining how to distribute the money will take a lot of time.

The massive collapse of the cryptocurrency exchange FTX in recent weeks has generated a lot of fear and uncertainty in the financial and cryptocurrency industries.

Contents
Key InsightsFTX Owes Billions to CreditorsRepaying Investors Could Take Decades FTT Price Analysis

When FTX’s founder and CEO Sam Bankman-Fried transferred $10 billion of customer monies from FTX to his private trading company, Alameda Research, at least $1 billion of customer funds disappeared from the defunct exchange.

Since then, a sizable chunk of that sum has vanished, leaving a hole in the market worth billions of dollars and devastating many individuals and corporations.

However, as the state of the exchange slowly unravels, it has come to light that the now-bankrupt exchange owes about 50 separate investors billions of dollars and might take decades to repay its debts.

FTX Owes Billions to Creditors

The cryptocurrency exchange FTX has revealed that it now owes its 50 largest creditors close to $3.1 billion.

According to documents filed in the Delaware bankruptcy court, the exchange has applied for bankruptcy court protection in the United States.

The filing revealed how much loss the exchange’s clients could incur, even though it withheld the names of the parties involved in the quick collapse of FTX.

The cryptocurrency exchange announced that it has started a strategic evaluation of its worldwide assets and is putting some firms up for sale or reorganization.

According to a different court filing, a hearing on FTX’s so-called first-day motions is scheduled for Tuesday morning this week before a U.S. bankruptcy judge.

Without naming them, the exchange stated in a court statement that its top ten debtors are owed almost $1.45 billion, each of which is approximately $100 million.

According to the filing, the debt is not owed to business insiders and may change as new information becomes available.

However, FTX owes its third biggest creditor $174 million, its fiftieth biggest creditor almost $21 million, and its largest creditor slightly more than $276 million.

Although the exchange disclosed that it might have more than 1 million creditors last week, the filing may only be the tip of what the bankrupt exchange owes.

Interestingly, while the name of the third creditor was not revealed, the details tally with that of Gemini, which disclosed last week that it has $175 million in its FTX account.

Repaying Investors Could Take Decades 

The question on the minds of FTX’s investors is when they will be able to get their money from the cryptocurrency exchange.

However, according to recent reports, insolvency attorneys have mentioned that this might take “decades.”

One of these attorneys is Stephen Earl, a partner at Australia’s CO Cordis.

According to Earl, releasing the crypto assets from FTX and determining how to distribute the money will take a lot of time. He further stated that the procedure might take years or even decades.

Earl says these difficulties will likely come from conflicting jurisdictions and complex cross-border insolvency issues.

The former FTX customers are regrettably in line with everyone else, including creditors, investors, and venture capital funders. They advise individuals who have made crypto-crypto trades that they may not receive dividends for “years.”

Anyone who holds funds on FTX will become a creditor. A creditors committee was established to represent their interests, according to Simon Dixon, founder of the international investment platform BnkToTheFuture.

He has been a vocal participant in the Celsius bankruptcy proceedings.

According to what is left after bankruptcy fees, the creditors will eventually have access to the residual assets.

According to the CEO of Binance Australia, these costs could be high given the time needed to recover funds. However, he also pointed out that this would result in increased legal and administrative costs that would reduce customers’ returns.

FTT Price Analysis

Following the FTX crisis, the price of the FTX Token (FTT) fell by 90.93%. It is currently trading at about $1.259 and showing no signs of recovery.

Since 8 September 2021, when it hit an all-time high of $85.78, FTT has been in a correction. The cryptocurrency mirrored market sentiment as it entered the bear market in November and continued its downward trend.

Chart showing the price action of FTT, FTX, VOC, Voice of crypto
Chart showing the price action of FTT | Source: TradingView

However, the token’s price is still down, with its RSI recovering under oversold conditions.

FTT is still miles under all of its major moving averages. It needs strong bullish price movement to move past the $2.5 resistance.

However, given the present market conditions, the future price movement of FTT is still under heavy speculation.

Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it 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.

You Might Also Like

Why Elon Musk Called for a Pause on AI Development

10 Top Crypto Airdrops for April 2023

SEC Head Gensler Seeks $2.4B to Fight Crypto Corruption

MetaMask Issues Warning on Fake Airdrop Rumors

9 Proven Ways to Secure Your Crypto Portfolio

TAGGED: Crypto Exchange
Share this Article
Facebook Twitter Email Copy Link Print
Previous Article Crazy Rich Asians to Lead Crypto Adoption in Asia Bitcoin (BTC) Price Will Explode Soon, Says Former Goldman Sachs Executive
Next Article VOC, Voice of Crypto, BTC, Crypto FTX Collapse Fails to Deter This Billionaire Crypto Investor
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Binance

Follow US

Find US on Socials
Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Subscribe to our Newsletter

Get Newest Articles Instantly!

Ledger
Popular News
Web3 Shorthand
Web3 Shorthand: A Glossary for Crypto Newbies
Elon Musk AI Crypto
Why Elon Musk Called for a Pause on AI Development
Quick-Tips-To-Avoiding-A-Fake-Crypto-Wallet
Quick Tips To Avoiding A Fake Crypto Wallet

Follow Us on Socials

We use social media to react to breaking news, update supporters and share information

Twitter Instagram Facebook Facebook Linkedin Youtube Spotify Medium Reddit Telegram
Voice of Crypto

Voice Of Crypto hits a beat with almost 15 million users, churning out the best news and content in the Web3, crypto and blockchain space

Subscribe to our newsletter

You can be the first to find out the latest news and tips about trading, markets...

  • Advertise With Us
  • About Us
  • Privacy Policy

Copyright © 2023 Voice of Crypto. All Rights Reserved

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?