Analysts Worry About FTX: “Don’t Get Your Hopes Up!”

Analysts say the estimated $16 billion in cash payments to FTX creditors will not have much of a positive impact on cryptocurrencies.

The excitement among retail investors about FTX’s court-approved bankruptcy plan may be short-lived, according to a new report from Presto Labs. The report says analysts are uncertain whether the $16 billion in cash payments to creditors will flow into the crypto market.

The U.S. Bankruptcy Court for the District of Delaware approved FTX’s Plan of Reorganization on Monday, nearly two years after the stock market crash. Under the plan, 98 percent of FTX creditors will receive approximately 119 percent of their allowable claims within 60 days of the effective date, subject to certain requirements.

FTX estimates that the total value of the estate available for distribution will be between $14.7 billion and $16.5 billion. This amount includes assets controlled by various entities, including Chapter 11 debtors, the joint official liquidators of FTX Digital Markets, Ltd. in the Bahamas, the FTX Australia Administrators, the US Department of Justice, and numerous private parties.

The research firm states that repayments will begin within 60 days of the “effective” date of the yet-to-be-determined plan. It is not yet clear how creditors will evaluate the repayments. Crypto investors are divided. One group thinks that money will flow into the sector, while the other believes that it will not have much impact on the market.

Volatility has increased in $FTT with FTX back on the agenda. The exchange’s native token fell 10 percent in the last 24 hours to $2.30.

#CryptoDeNostradame #ParrotBambooCrypto #KIP #KIPprotocol #Reecoin