Bankrupt FTX’s token valuation rebounds to over $1 billion as customers contest bankruptcy plan News ▸ US ▸ FTX ▸ Bankruptcy
Bankrupt FTX’s token valuation rebounds to over $1 billion as customers contest bankruptcy plan
Several customers of the failed exchange have objected to FTX's plan to dollarize their digital asset's claims.
2 min read
Updated: Jan. 15, 2024 at 2:46 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bankrupt FTX’s native token FTT market capitalization surpassed $1 billion again after a recent decline. Since the cryptocurrency exchange abruptly collapsed following a bank run in November 2022, it only briefly traded over $1 billion toward the end of last year, reaching $1.67 billion before declining back to under $850 million.
The recent resurgence can be attributed to the recent uptick observed in the token’s value during the last seven days, up more than 27% to $3.12 as of press time, according to CryptoSlate’s data.
During this period, the broader crypto market witnessed an uptrend spurred by the approval of a spot Bitcoin exchange-traded fund in the U.S. as investors rotated their investments into altcoins.
Data from CryptoSlate shows that several large-cap alternative cryptocurrencies, including Avalanche, Sui, and Ethereum, benefited from these developments as they posted double-digit gains.
Meanwhile, despite FTT’s improved price performance, the digital asset’s value remains more than 96% down from the all-time high of $84 recorded during the bull market run of September 2021.
FTX customers object to the exchange’s estimation plan
FTX’s bankruptcy process continues afoot, with several customers of the failed exchange filing objections against its plan to dollarize their digital assets’ claims.
Court filings showed that notable cryptocurrency firms, including bankrupt crypto hedge fund Three Arrows Capital, have filed objections against this plan.
Similarly, more than 60 customers of the failed firm worldwide have registered their opposition to FTX’s plan by writing the court.
The objectors argue that estimating their digital assets claim in U.S. dollars would deprive them of the substantial gains that these assets have accrued since the exchange filed for bankruptcy.
Notably, Sunil Kavuri, one of the most prominent creditors of the firm, further revealed that he and his lawyers, Moskowitz and Boies, objected to the FTX’s motion to estimate claims.
“Fighting for FTX creditors to maximise recovery for FTX creditors. We may commence our adversary proceeding for property rights as unresolved,” Kavuri added.
However, the Official Committee of Unsecured Creditors for the bankruptcy process supported FTX’s move to estimate the claims in U.S. Dollars. According to the Committee, the claims estimation provided the most efficient way to streamline the process and expedite the Chapter 11 confirmation.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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FTX is a cryptocurrency derivatives exchange that offers futures, leveraged tokens and OTC trading.
Ethereum
$3,346.82
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Avalanche
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Avalanche is an umbrella platform for launching decentralized finance (DeFi) applications, financial assets, trading and other services.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.