#FTT+5.83% #FTTCoinProfit #ftt #BTC-H1 #TradeNTell $BNB $BTC
FTT price dips despite FTX plans to make customers 100% whole in bankruptcy liquidation.
FTX token price dips 35% to intra-day high of $2.13 before quick rejection.
FTT upside potential remains capped with mounting overhead pressure and bulls showing weakness.
A break and close above $5.59 would invalidate the bearish thesis.
FTX intends to make crypto customers fully whole in bankruptcy liquidation.
FTX to make customers fully whole
A Report from Reuters indicates that the FTX exchange intends to make customers whole amid ongoing bankruptcy proceedings. Based on the report, the platform is liquidating the estate in an attempt to settle with creditors. The trading platform has abandoned plans to relaunch, instead, going for total liquidation and customer settlement as the better alternative.
While making customers whole again sounds like a good thing, there is a twist. Th$BTC e exchange will repay customers up to the USD value of their assets in November 2022. This means that users will get repaid for crypto values at cycle lows when Bitcoin (BTC), Ethereum (ETH) and Solana (SOL) traded for $18,000, $1,300, and $18.00, respectively.
The decision to capitulate comes after months of negotiations with potential bidders and investors. The turn of events suggests none have agreed to put in enough money to rebuild the FTX exchange. FTX attorney Andy Dietderich confirmed this at a bankruptcy court hearing in Delaware, based on the report. Dietderich cited the following reasons for the failure to secure an investor.
FTX was never what it appeared to be, “it was an irresponsible sham created by a convicted felon.”
SBF never built the underlying technology or administration requisite for running the company as a viable business.
The costs and risks of creating a viable exchange from what Mr. Bankman-Fried left were simply too high.
Nevertheless, the decision to repay customers could set a precedent in the crypto industry for handling bankruptcies and customer reimbursements.
psychological level soon.