FTX identifies liquid assets worth $5.5 billion as FTT price plunges by 15% in 24 hours
|- FTX management and advisors met with the members of the Official Committee of Unsecured Creditors to share information.
- As per the current estimates, both FTX.com and FTX.US are facing a shortfall of digital assets.
- FTT price noted a 15% decline after almost three weeks of trading in the green, rising by 193% to trade at $2.11.
FTX is making significant progress in its bankruptcy proceedings, given the recovery of assets coming to light. This is good news for the handful of traders still trading the bankrupt exchange's native token, as the FTT price could react positively and rise further to maintain its standing above $2.00.
FTX makes a Herculean effort
FTX debtors, in an announcement on Tuesday, revealed that the top management and advisors of the bankrupt exchange met with the members of the Official Committee of Unsecured Creditors (UCC).
The meeting was part of the Chapter 11 proceeding wherein preliminary information obtained was shared to provide an update concerning asset recovery.
During the meeting, FTX presented that a total of $5.5 billion worth of liquid assets had been identified. The presentation also covered the specifics of assets and property, along with cash and other investments like securities, real estate, and more, related to the debtors of FTX.
Of the $5.5 billion identified, $1.7 billion is in cash, $3.5 billion in the form of crypto assets and another $300 million as securities.
However, as per FTX debtors, there is still a substantial shortfall of digital assets on both FTX.com and FTX's US arm. Although according to the exchange's CEO, John Ray, the information is still preliminary and could change. Adding to the same, Ray stated,
"We are making important progress in our efforts to maximize recoveries, and it has taken a Herculean investigative effort from our team to uncover this preliminary information. We ask our stakeholders to understand that this information is still preliminary and subject to change. We will provide additional information as soon as we are able to do so."
The report comes merely days after FTX recovered more than $5 billion in the form of cash, liquid cryptocurrency and liquid investment securities.
FTT price marks skyrocketing growth
FTT price followed the recovery cues from the broader market and engaged in a rally closing on Tuesday with a 193.85% rise. Trading at $2.11 at the time of writing, FTT did not hold back, marking a rally higher than most of the other cryptocurrencies.
FTT/USD 1-day chart
However, the volatility that increased the price significantly is also the bane of FTT's growth, as it could push the price down just as quickly. FTT price needs to maintain above the $2.00 mark to avoid a steep retracement. The cryptocurrency is down by more than 15.4% at the time of writing.
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