FTX’s native token FTT has surged approximately 50% on false rumors of impending credit repayments, reaching a high of $2.75 before settling at $2.14. This spike marks a 56% increase in the last week and a 71% rise in the past month, with trading volume exceeding $360 million.
The sudden surge in FTT’s value seems to be linked to ongoing bankruptcy proceedings at FTX, despite the token’s limited usage beyond speculation.
False Repayment Rumors
Unfounded claims on social media suggested that FTX would commence repayments on Sept. 30, but no repayment plan has been approved by the court. The next hearing regarding FTX’s restructuring plan is scheduled for Oct. 7.
If the plan is approved, smaller claimants could start receiving payments by late 2024, while larger sums might have to wait until mid-2025.
FTX Repayment Plan
FTX’s proposed repayment plan has faced opposition from creditors, particularly after revelations about the allocation of government forfeitures to select shareholders. This information was disclosed late, leading to discontent among creditors who may recover only a fraction of their assets.
