- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.