FTT Token Surges 17% After FTX Confirms Rumors Of Relaunch
02 August 2023 - 1:30PM
NEWSBTC
Bankrupt crypto exchange FTX has submitted a proposal that may
result in the relaunch of its international arm FTX.com. On August
1, the company’s bankruptcy administrators confirmed rumors of a
relaunch by filing a draft plan of reorganization in which it
proposes the kick-off of a “rebooted” offshore exchange exclusive
to non-U.S. users only. Related Reading: FTT Flies 45% On Rumors Of
FTX Planned Relaunch FTT Gains By 17% Amidst Plans To Terminate
Claims FTT, native token of the FTX exchange, recorded a
significant boost in its price on the emergence of the exchange’s
proposal to relaunch in the international market. According
to data by CoinMarketCap, FTT rose by 17% on Tuesday, moving from
$1.34 to $1.59. Thereafter, the token experienced a decline,
falling as low as $1.42, but has been climbing back up since then.
Interestingly, FTT’s gain today has occurred amidst the exchange’s
plans in relation to its native token. According to the draft plan
of reorganization, FTX stated intentions to cancel all FTT claims
as a result of their “equity-like characteristics.” The
statement read: ….claims by holders of FTT (whether or
not held on any FTX exchange), preferred stock, and equity
investors in the Debtors and related claims. All these claims and
interests will be canceled and extinguished as of the Effective
Date, and holders will not receive any distribution. At the time of
writing, FTT is trading at $1.45, having gone up by 7.39% in the
last day. Meanwhile, the token’s daily trading volume is up by
378.65% and is now valued at $43.8 million. FTT trading at $1.43 on
the daily chart | Source: FTTUSDT chart on Tradingview.com Related
Reading: Ethereum DeFi Coins Plunge As Curve Concerns Threaten
Major Market Crash FTX.com To Relaunch As Exchange Plans Settlement
For Foreign Customers As part of its reorganization plan, FTX is
implementing a categorization system for claimants. Those who use
FTX.com exchange will be referred to as Dotcom customers, while FTX
U.S. customers will be placed in the U.S. Customer Pool. This
approach is aim at helping FTX better organize its customer data
and provide more efficient service to its valued clients. In
regards to the settlement of Dotcom creditors, FTX proposes that
debtors may partner with third-party investors to set up a new
exchange that will operate as an offshore platform. Alternatively,
this exchange can also be formed as a merger or “similar
transaction.” Thereafter, the debtors may then choose to
grant the Dotcom customer pool some share of the company instead of
conducting a full cash settlement. A statement from the draft read:
Rather than all cash, the Debtors may determine that the Offshore
Exchange Company remit non-cash consideration to the Dotcom
Customer Pool in the form of equity securities, tokens, or other
interests in the Offshore Exchange Company or rights to invest in
such equity securities tokens or other interests (“Take-Back
Interests”). Talks concerning an FTX.com relaunch began as
early as January, with the company CEO, John J. Ray III, stating he
had authorized a team to explore that possibility. In June, WSJ
reported that the company had begun discussions with potential
investors in a bid to meet the goal. Featured image from
PRNewswire, chart from Tradingview.com
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