The topic of payments to FTX creditors as a factor in the growth of the crypto market is resurfacing on the Internet.
The reason was the news that the bankrupt crypto exchange FTX plans to distribute $14-16 billion among creditors. This is stated in a letter from the company dated July 7 with reference to official documents.
The first payments will begin in October or November 2024. And how can one not note here that this is close to the “Santa Claus rally”.
#FTX lawyers said the company has reached an agreement with the US government to sell assets. Including investments in cryptocurrency, shares in technology companies, venture capital funds and real estate. The firm's proposed payment plan includes categorizing the exchange's creditors into several categories based on requirements.
The document states that for claims under $50,000, the payment rate will be 118%. And payment obligations will be fulfilled within 60 days from the date of activation of the plan. However, customers with insurance claims over $50,000 will receive compensation ranging from 127% to 142%.
The head of the investment company SkyBridge Capital, Anthony Scaramucci, commenting on the news on #CNBC, said that 40-50% of the $14-16 billion in payments will return to the digital asset market. And it will provoke a new wave of growth. Not the ultimate truth (Scaramucci, like any other public player, has his own interests in such statements). But it's worth considering.
The#FTTprice doesn’t react much to this news, and why would it? The other day the price updated the April level, testing the volume level of $1.0093 with a squeeze. Having broken through trend support since October 2023.
The DeMark trend reversal indicator gave a “Cheap” signal on July 8th. But in the case of weakness of altcoins, nothing yet indicates the ability to go against the market. And even in the case of growth, for now it will only be a rebound until the downward trend resistance from March 6, 2024 is broken through.
We are thinking of taking a risk once again and, after waiting about another month for the “Cheap” signal on the weekly time frame, we buy. If the downward trend this week is not broken earlier. Historically, after an exchange scam, such a signal on the weekly timeframe showed itself well in two out of two cases.
We plan to buy as much as we don’t mind and without a stop. So that they don’t end up being manipulated, as happened in the fall of 2023 before the pump.
