FTX token doubles on news of bankruptcy restart plan

FTX token doubles on news of bankruptcy restart plan

54
Author: Robert Strickland (crypto expert)
Subscribe

FTX (FTT) exchange token surges 107% on news of bankruptcy re-launch plan The cryptocurrency FTT has reached new highs since the exchange went bankrupt after FTX lawyers announced to the court that a reorganization of the exchange could involve its revival

The native token of the exchange FTX (FTT) price skyrocketed after news of a potential relaunch of the insolvent crypto platform. The price of FTT jumped 107% in a moment, from $1.32 to $2.74, hitting its highest since November 11, when the platform declared bankruptcy. The price increase came after FTX lawyers told the court of their plan to prepare a restructuring plan for the platform.

At a court hearing on April 12, FTX bankruptcy attorney Andy Ditderich from law firm Sullivan & Cromwell said FTX plans to present a preliminary reorganization plan in July, CoinDesk reports. The plan could include a restart of the exchange, Ditderich said.

“The reputation is worse than ever.” How an FTX exchange relaunch might go

According to Sullivan & Cromwell reports, lawyers examined potential issues that could arise in restarting FTX. They considered cybersecurity, and taxation and discussed “creating a prototype of the exchange to test the user experience.”

So far, the company has recovered $7.3 billion in mostly liquid, distributable assets, according to the lawyer’s presentation. Earlier, a much lower figure of about $2.8 billion had been mentioned, with the exchange having $11.6 billion in liabilities to creditors.

FTT is trading at $2.49. According to CoinGecko, its price is up 87% overnight. In November 2022, before the FTX collapse, FTT was trading around $22-25, but the exchange’s collapse brought the coin’s price down to $1.5. It never rose above $2.62 from Nov. 12 to April 12, according to CoinGecko.

Other news

Bitcoin is growing without mass hype. When everyone starts talking about cryptocurrency
Traders in options are betting on Bitcoin to rise above $65,000.
How Bitcoin Halving Will Affect Its Price. Key Points from the Grayscale Report
Bitcoin has returned to growth and reached $45,000. What's next?
In London, the trial of the self-proclaimed creator of Bitcoin has begun.
One of the best months. What will happen to Bitcoin in February
Trustpilot