In developments in the cryptocurrency industry, FTX, which declared bankruptcy in November 2022 under the leadership of convicted Sam Bankman-Fried, is expected to repay up to $16 billion to its customers.

Once this news is confirmed and repayment begins, it will have a significant impact on the prices of Big Cake, Second Cake and Solara.

According to cryptocurrency research firm Xremlin, much of this huge amount of cash is expected to flow back into the market and become a catalyst for growth.

According to the agency Xremlin, the importance of this return was emphasized in a recent social media post, pointing out that $16 billion would be returned to previous FTX users.

Xremlin believes that most of the returned funds are expected to be invested by users in the market, especially for purchasing various coins, including Bitcoin and Solara, thereby bringing huge purchasing power and price growth to the market.

The source of this huge amount of cash can be traced back to an agreement reached between FTX and US government agencies, under which FTX will sell assets acquired with misappropriated customer funds, including investments in cryptocurrencies, technology companies, venture funds, and real estate.

In addition, FTX has previously invested $5 billion to acquire shares in AI startup Anthropic, from which it found $6.4 billion in cash. It should be noted that this amount also includes assets controlled by debtors and liquidators.

However, since FTX filed for bankruptcy in November 2022, the distribution plan has faced dissatisfaction from some customers due to its desire to settle customer claims at a lower price. For example, a customer holding 10 2bits will receive about $12,000, far less than the asset's current value of about $30,000, with the current price of 2bits at $3,000.

Despite some objections, the court has given creditors permission to vote on the liquidation plan, which will be implemented after the court's final approval if it receives the necessary votes.

The dates to focus on are August 16, 2024, which is the deadline for FTX customers to vote on bankruptcy liquidation, and October 7, 2024, when Judge John Dorsey will consider whether to approve FTX's bankruptcy plan.

If the current plan is approved, it is expected that payments to customers could begin by the end of the third quarter, providing much-needed liquidity to the market. This timing also coincides with the US election, which may also lead to increased market volatility.

Therefore, FTX's repayment may become an additional factor driving the bullish trend in the crypto market, with Bitcoin falling more than 21% in the past month, from a high of $71,000 to the current $56,400. Meanwhile, Solara fell 22% in the same time frame, outperforming Bitcoin's decline and currently trading at $134.

Additionally, it is expected that the continued selling pressure from the U.S. and German governments over the past month may continue until the end of the year, and FTX's cash return to users may help alleviate the expected selling pressure when the time comes.

Since most of the affected FTX customers are retail investors, it is expected that a large portion of the repaid funds will flow back into cryptocurrencies. In particular, BigBing, SecondBing, and Solara are likely to receive the most liquidity.

The above is a comprehensive analysis of the possible market impact of FTX bankruptcy and its repayment of funds to users. We will continue to monitor this incident and update relevant developments at any time.

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