The FTX collapse occurred two years ago, but for most cryptocurrency investors, it remains a difficult memory to forget, especially for those victims who lost their cryptocurrencies. However, as the main factors behind the collapse face consequences, things are returning to normal, so the price of FTX tokens is starting to strengthen. Interestingly, due to trading volume skyrocketing by 450% in the past 24 hours, FTT price surged by 12%.
Why did FTT trading volume rise to $161.31 million after increasing by 450%?
As Sam Bankman and his accomplice Caroline Ellison begin serving prison time, the FTX exchange has welcomed new leadership. Over the past two years, things have been moving in favor of creditors as the company focuses on restoring its reputation, but first, it must develop a repayment plan for the victims.
Just yesterday, FTX debtors announced a repayment of $12 billion under Chapter 11, with the agreement set to take effect on January 3, 2025. To facilitate the smooth distribution of this multi-billion dollar fund, the company has partnered with crypto exchange Kraken and digital custodian BitGo. More importantly, the initial distribution to creditors will occur within 60 days after the effective date. In this case, creditors can claim their confirmed holdings in cash or stablecoins.
FTX debtors announced today that the effective date of their restructuring plan is set for January 3, 2025, which is also the first distribution record date allowed for creditors in the convenience category of the plan. For more details, please see: https://t.co/7Hggm5cTlS
— FTX (@FTX_Official) December 16, 2024
Shortly after the announcement, funds began to flow into the token, causing FTT trading volume to increase by 450% within 24 hours, with volume skyrocketing. Currently, the trading volume is $161.35 million, far above average. Furthermore, the price of FTX tokens has also surged significantly, giving holders hope of recovering losses.
FTX token price surges 12%, will it reach $20 next?
On December 16, FTX's official X page announced the debtor's redistribution plan. Meanwhile, the price of FTX tokens surged from $2.5 to $3.1 within an hour. Although there was a subsequent pullback, the FTT price maintained an upward momentum, leading to a significant rebound from an earlier decline. After bullish signals were reported in the earlier chart showing a double bottom pattern, the current trading price is $2.97. Therefore, experts believe that the FTT price will rise by 550%, reaching $20. The last time the FTX price approached this level was before the FTX collapse. However, this is only possible if the chart maintains this pattern.
In any case, other crypto analysts, including Crypto Signals' FTX price prediction, believe it could surge to $3.5 and then reach an extended target of $4.79.
Conclusion
Two years after the FTX collapse, things are moving in favor of creditors as the debtors have launched a repayment plan. This plan will focus on distributing approximately $12 billion in funds in the form of cash or stablecoins, effective from January 3, 2025. This FTX news has played a major role in the rise of FTX token prices, as investor interest returns to the asset, leading to high FTT trading volumes. However, similar jumps have occurred before, especially during periods dominated by bull markets and record high Bitcoin prices, which is why the sustainability of this jump is in question. However, with the formation of the double bottom pattern, if this pattern holds, the FTT price could reach $20.
