These 5 altcoins are rallying ahead of $16 billion FTX creditor payout
- FTX begins creditor payouts on January 3, in agreement with BitGo and Kraken, per an official announcement.
- Bonk, Fantom, Jupiter, Raydium and Solana are rallying on Thursday, before FTX repayment begins.
- Experts believe creditor repayments could infuse fresh cash into the market, likely to contribute to buying pressure on crypto tokens.
FTX exchange is set to begin repaying its creditors on Friday. The bankrupt exchange is set to begin repayment of up to $16.5 billion in assets recovered after the entity’s collapse.
United States (US) bankruptcy judge John Dorsey approved the plan at a court hearing and FTX is expected to repay 98% of its customers who held $50,000 or less on the exchange, through BitGo and Kraken.
Ahead of the fresh capital infusion in the crypto market, altcoins Bonk (BONK), Fantom (FTM), Jupiter (JUP), Raydium (RAY) and Solana (SOL) are rallying on Thursday.
FTX creditor repayments begin on Friday
Most creditors of the bankrupt FTX exchange will receive between 98% and 119% of their claim value. Claims under $50,000 will be prioritized first with BitGo and Kraken managing payouts to creditors.
The exchange first filed for bankruptcy in November 2022 with an estimated debt of $11.2 billion. Payouts are expected to total up to $16.5 billion, as the exchange is raising additional funds by selling off assets and investments in tech firms.
Edwin Mata, CEO of Brickken, stated in an exclusive interview with FXStreet:
“We have to consider that people who lost their money need to cover their losses; they are probably not going to invest again. There is fresh cash for those who are in a surplus, they can reinvest [in the crypto market]. Nonetheless, there is fresh cash flooding into the markets and that is always good.”
Dario Lo Buglio, Head of Blockchain and co-founder of Brickken, believes that in the long run, the creditor payback does not make any difference. “In the long run, it doesn’t make any difference. We can take the opposite side and remember Mt.Gox and how it didn’t have much of an impact on Bitcoin price in the long run,” said Lo Buglio to FXStreet.
These altcoins are rallying ahead of FTX repayments
Bonk (BONK), Fantom (FTM), Jupiter (JUP), Raydium (RAY) and Solana (SOL) are rallying ahead of Chapter 11 reorganization. The five altcoins have yielded between 3% and 9% gains on Thursday, rallying in anticipation of capital infusion and buying pressure across exchange platforms as creditor repayment begins on Friday.
On Thursday:
BONK: 8%
FTM: 2.77%
JUP: 6.74%
RAY: 8.94%
SOL: 7.12%
Solana crossed a key threshold of $200 on Thursday, climbing to a high of $209.49 before correcting to $208 at the time of writing. The key drivers of the gain in altcoins are Bitcoin’s recovery above $96,000 and the rise in confidence among traders, evident from rising market capitalization, as seen on CoinGecko.
Crypto market capitalization climbed above $3.55 trillion on Thursday, with a market-wide recovery in Bitcoin and altcoins.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
