FTX Token Soars 70% Amid Bankruptcy Settlement Hype

FTX Token Gains 70% on Anticipated Bankruptcy Payouts

FTX Token (FTT), the native cryptocurrency of the bankrupt exchange FTX, experienced a significant surge in price following speculation about upcoming bankruptcy distributions. On September 29, FTT soared by more than 70%, briefly hitting a multimonth high of $2.70, marking its first time reaching that level since March 2024, according to CoinGecko data.

Before the price spike, FTT had been trading around $1.40 for the past month. However, on September 29, the token surged, posting over 70% in daily returns. Despite this initial spike, FTT’s price later fell to around $2.10 as of September 30, showing a 30% increase over the past 24 hours.

FTX Rumors Fuel Price Rally

The sudden rise in FTT’s price was driven by rumors circulating on social media. These rumors suggested that the FTX bankruptcy estate was preparing to distribute reimbursement funds to creditors and customers starting on September 30.

Despite the excitement, the official Chapter 11 bankruptcy filing indicates that the plan has not yet been approved. A court hearing to approve the distribution plan is scheduled for October 7. If approved, creditors with claims under $50,000 are expected to begin receiving payments by the end of 2024. Larger creditors, however, may need to wait until the first or second quarter of 2025 for distributions.

As the situation unfolds, FTT traders and creditors alike are watching closely for further developments regarding the bankruptcy proceedings.

Also Read: Onyx Crypto News: DeFi Overhaul Gains Full Community