Chiliz allocates 38 million CHZ to rescue traders who lost funds in FTX collapse
- Chiliz announced that the project is ready to compensate up to $10,000 per FTX user who lost their crypto in the FTX collapse.
- FTX users who owned CHZ are covered by the project, and Chiliz is engaging a liquidator to facilitate the coverage.
- Analysts believe Chiliz price could plummet to $0.15 before a comeback in the altcoin.
Chiliz announced its decision to allocate 38 million CHZ to a public address to help compensate up to $10,000 per FTX user who lost funds. The project has decided to engage with the liquidator to facilitate this over the next few weeks.
Also read: Dogecoin price: Dogechain releases staking guide, DOGE price struggles to recover
Chiliz rescues users who lost funds in FTX exchange
Chiliz has unveiled a plan to rescue traders who lost CHZ in the FTX-Alameda collapse and the bankruptcy that followed. The project decided to allocate 38 million CHZ tokens to a public address and subsequently compensate up to $10,000 per user that owned the token on the platform.
SAFU: At @chiliz we decided to allocate 38M $CHZ to a public address (https://t.co/meidaHUPmS) to compensate up to $10,000 per @FTX_Official user that owned $CHZ on that platform last Friday. We will engage with the liquidator in order to facilitate this coverage over next weeks;
— Alexandre Dreyfus (@alex_dreyfus) November 13, 2022
Chiliz will engage with the liquidator, facilitate the token distribution over the next few weeks, and help make CHZ users on FTX whole. At the time of the announcement, CHZ was changing hands at $0.20, and the total number of holders was 160,803.
CHZ is struggling to recover from the FTX-induced crypto crash, and the token yielded 7% losses overnight for Chiliz holders. FTX exchange held nearly 38 million CHZ tokens on-chain up to last week.
The project, therefore, launched this initiative to protect CHZ holders and individuals affected by the crash. The industry only covers individuals and not institutions. The proposal is still subjected to complete legal review and approval from the liquidator to protect traders' interests.
Chiliz initiative is the second of its kind post the FTX collapse. Tron Labs successfully filed an agreement with FTX to support Tron ecosystem token holders and help them move TRX and related tokens off the exchange to other wallets.
The Chiliz announcement therefore assures CHZ holders that their losses to the tune of $10,000 worth of tokens per user would be compensated, making them whole after the bankruptcy and collapse of FTX exchange.
Analysts bearish on Chiliz price
Analysts are bearish on Chiliz in the ongoing bear market. Azeez Mustapha, a crypto analyst argues that CHZUSD could drop to support at $0.15.
CHZUSD price chart
The token is currently changing hands at $0.19, and a pullback is likely before a rally in Chiliz.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
