FTT Token Surges 17% After FTX Confirms Rumors Of Relaunch
August 01 2023 - 7:08AM
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-US users only. FTT Gains By 17% Amidst Plans To Terminate
Claims FTT, the 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. Related
Reading: FTT Flies 45% On Rumors Of FTX Planned Relaunch 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 despite 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 FTX.com
To Relaunch As Exchange Plans Settlement For Foreign Customers
Based on its proposed blueprints for reorganization, FTX intends to
sort claimants into several pools. Firstly, customers of the
FTX.com exchange will be termed as Dotcom customers, while
customers of the FTX US are drawn into the US Customer Pool.
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.” Related Reading: Ethereum DeFi Coins Plunge As
Curve Concerns Threaten Major Market Crash 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 actualize the
goal. Featured image from PRNewswire, chart from Tradingview.com
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