FTX token FTT jumps 8% as exchange wins approval to start selling $744 Million in Grayscale and Bitwise assets
|- FTX token FTT is up 8% with momentum indicators hinting at more gains, which could see the price break from consolidation.
- It comes as FTX exchange has secured approval to start selling $744 million in Grayscale assets to make creditors whole.
- The sale will be timed to avoid disrupting the crypto market while still maximizing the value.
FTX token (FTT) has jumped 8% following news that a US bankruptcy court of Delaware has allowed the now-defunct cryptocurrency exchange to move forward with a November 6 request.
Also Read: SEC believes Binance and ex-CEO Changpeng Zhao crimes were similar to fraud witnessed in FTX
FTX wins court approval to sell Grayscale and Bitwise trust assets
FTX and its debtors had made a request to the court that it approve the sale of trust assets constituting its stakes on Grayscale and Bitwise earlier in the month. The assets, valued at around $744 million, with $597 million being in GBTC, would be sold through an investment adviser for the purpose of making the exchange’s creditors whole through dollarized distribution.
FTX assets at Grayscale and Bitwise
In the latest report, the court has granted this application, with Bloomberg reporting that court documents reveal how FTX plans to sell the assets in a way that maximizes the value while avoiding market disruption.
FTX Approved to Start Selling $744 Million in Grayscale Assets: BBG
— Tree News (@News_Of_Alpha) November 29, 2023
FTX Approved to Start Selling $744 Million in Grayscale Assets: BBG
— Tree News (@News_Of_Alpha) November 29, 2023
It all comes after the exchange filed for Chapter 11 protection on November 17, after detrimental discoveries including that its founder and then CEO, Sam Bankman-Fried (SBF), had commingled assets between FTX and its sister firm, hedge fund Alameda Research.
Recently, SBF was found guilty on seven counts of offenses and is now awaiting sentencing in March 2024. He faces up to 115 years in prison.
FTX token reacts
The news has inspired a positive move in FTX token, FTT. It jumped around 8% accompanied by a 40% drop in trading volume, suggesting market risk. At the time of writing, the token was trading around $4.2689, with the Relative Strength Index (RSI) still above the 50.0 level hinting at more gains due to its inclination to the north to signify momentum is being sustained.
FTT/USDT 1-day chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.