Are you bearish? Think again. FTX will distribute $16 billion in cash to its customers in Q3.

Most FTX users are crypto native. And most of the rebate will flow back into the market. Where might the funds go? (+ details)

FTX creditor recovery details: - Administrative claims: $169 million (100% recovery) - Secured claims: $250 million (100% recovery) - Dotcom customer claims: $7.995 billion (127-142% recovery) - US customer claims: $1.132 billion (129-131% recovery) Source of cash: The FTX team reached an agreement with US government agencies and sold assets acquired with misappropriated customer funds, including: - Investments in various cryptocurrencies - Shares in technology companies and venture capital funds - Real estate holdings

"Mt. Gox's offering and FTX's offering may have completely different effects"

Therefore, the amount received by customers will be lower than the current value of their holdings (for example, 10 ETH in November 2022 is worth $12,000, while today it is $29,000). Customers have until August 16, 2024 to vote on the payment plan. If approved, the court will give final approval on October 7, 2024. Payments could begin by the end of the third quarter of 2024, possibly in September.

As mentioned, customer payments are expected to begin in the third quarter, a time that coincides with: - US elections. - Fed rate cuts.

Where will liquidity go? Well, we won't know until we see it. The most obvious is memecoin; most of them may see a small increase. I don't think this will last for long, though. I believe fundamentals will win out. There will be bids for Arbitrum, Pendle, some RWA projects, and AI.