Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: examplens on September 20, 2024, 05:26:23 PM
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Although I am quite sceptical about this, maybe it will happen.
What are the predictions, will this have a positive effect on the crypto market? $16B is already a considerable amount, although I don't believe that investors will immediately start terminating assets.
In about 2 weeks from now, FTX will start distributing $16B to its creditors
(https://talkimg.com/images/2024/09/20/gRnu9.jpeg)
https://x.com/Bitcoinsensus/status/1837137137499553947
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Although I am quite sceptical about this, maybe it will happen.
What are the predictions, will this have a positive effect on the crypto market? $16B is already a considerable amount, although I don't believe that investors will immediately start terminating assets.
Mt.Gox returned BTC to its users, while FTX will return $ to its victims. Some people will leave the crypto market due to fears of similar risks, but the rest will continue to stay and invest in crypto, and their money will become a new capital flow for the market.
Assuming only 20% of $16B, equivalent to $3B, is used to buy crypto, we will immediately feel the price increase of numerous tokens in the market, starting with BTC, ETH, and SOL. Well, I never dared to think that the money from FTX victims could be a significant driving force to pull the market out of a boring accumulation phase ^^
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I posted about FTX here ;D: https://www.altcoinstalks.com/index.php?topic=324034.msg1628685#msg1628685
Where I have the same doubt, can the money paid to creditors go back into cryptos?
I think a lot of it will, but I don't know how much
If it's really in 2 weeks, it will be something incredible, but I have my doubts, since the process is still going on and I think it will take a few more months
I received an e-mail to fill in the tax information, which would theoretically be almost the end of the whole process
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Thanks OP for this thread. I was following a similar thread in the other forum but I lost track of it.
I posted about FTX here ;D: https://www.altcoinstalks.com/index.php?topic=324034.msg1628685#msg1628685
Where I have the same doubt, can the money paid to creditors go back into cryptos?
I think a lot of it will, but I don't know how much
It depends on so many factors. I think majority of the money will not return to crypto. Consider these situations;
- Someone who was bankrupted because of the FTX incidence, will likely withdraw all the money to cash in order to stabilise again.
- The trauma of loss is still in some, they might likely not return the money to crypto.
- Persons who have already forgotten about the money will likely commit it back to crypto
It hits differently and that's it. But the news only can move the market if the transactions are meant on a day
I received an e-mail to fill in the tax information, which would theoretically be almost the end of the whole process
Nice to see a victim, we could follow the story up from you.
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It is nice the FTX team took this decision of making refunds of investors funds. It would go along way to remedy the situation they got themselves into. However, the money would be a big deal for the crypto industry but i am afraid not all of them would remain in the industry. Due to the experience of some investors, they would just cash out and go their way while a limited but just few would reinvest in crypto and these are those who still have the fate in the crypto industry to make a change in history.
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Good news for the victims after all this long wait for the FTX issue that left the biggest bad impact on the crypto world to be resolved, I hope everyone gets their compensation fairly.
As for the expected impact of returning these funds, it will definitely be very large if they are all pushed into the market, but as the members mentioned above, this is unlikely to happen because most of the victims who have recovered their funds may have a fear of re-experiencing buying crypto assets again.
For me, if I were one of the victims and these funds returned after I had despaired of them and forgotten about them, I would probably spend half of them and buy crypto assets with the remaining half, especially since we are waiting for a new Bitcoin peak and the opportunity is still available until now.
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I believe that this could move the market in the bull direction but it might not be that significant. If the payment is already in crypto, it might not be as impactful to the market but having it in fiat, there would be a possibility of putting new money into the market.
I hope that this event is a positive one for the cryptocurrency market.
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Although I am quite sceptical about this, maybe it will happen.
What are the predictions, will this have a positive effect on the crypto market? $16B is already a considerable amount, although I don't believe that investors will immediately start terminating assets.
In about 2 weeks from now, FTX will start distributing $16B to its creditors
(https://talkimg.com/images/2024/09/20/gRnu9.jpeg)
https://x.com/Bitcoinsensus/status/1837137137499553947
I am also skeptical about this, I don't believe they will distribute 16 billion dollars to customers. If they commit to a $16 billion distribution, maybe the market will have a positive impact. But not only will there be a positive impact on the market, there will be a positive impact for FTX. But they can never gain popularity like before because they have lost popularity from people. They have lost popularity among investors in a way that will never come back. I am also a victim here I have lost a lot of my investment due to their cheating and now if they promise to pay that compensation I will never accept it because I have suffered a lot from them here.
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That means there will be a big short-term dip after two weeks so whatever you want to buy now (that's expensive), do it now I guess before the temporary dip comes into play.
But having said that, it should almost certainly recover from any such dip on November. Besides, I remember that Bitcoin actually went up so much that time of the year, 4 years ago (last cycle in other words).
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That means there will be a big short-term dip after two weeks so whatever you want to buy now (that's expensive), do it now I guess before the temporary dip comes into play.
The big short-term dip might likely be the last opportunity for the year I guess and those who still want to fill their bags can still do that when its time. I would prefer to buy more when the short-term dip avail itself because that time tokens would be very much cheap as it would be a bear market. If that is the last dip before the bull run, I am anticipating it so I could buy more token before bull run.
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Earlier news talked about the amount from 14.5 to max 16.3 billion in cash after everything that can be sold is sold, and now the only question is how many crypto assets have been sold so far. In the event that assets are sold gradually, this will be a positive situation, considering that we will have a large influx of cash into the accounts of potential investors - and it will be bad if there are billions worth of tokens/coins that should be liquidated in a short period of time.
Somehow, it doesn't seem to me that it is realistic to expect that all those billions will be paid out at once, it will probably be a process that will last for months.
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Earlier news talked about the amount from 14.5 to max 16.3 billion in cash after everything that can be sold is sold, and now the only question is how many crypto assets have been sold so far. In the event that assets are sold gradually, this will be a positive situation, considering that we will have a large influx of cash into the accounts of potential investors - and it will be bad if there are billions worth of tokens/coins that should be liquidated in a short period of time.
Somehow, it doesn't seem to me that it is realistic to expect that all those billions will be paid out at once, it will probably be a process that will last for months.
I suspect that the vast majority have already been sold, including some days when the market fell a lot, which may have been influenced by the sale of crypto for stables or dollars
Regarding payment, I think it will be made in dollars, fiat, and they will use an intermediary like Paypal to be able to pay victims from all countries
They have even informed us that the payment may even be 10% more than the users agreed, since they have taken more than they owe the victims
However, it is worth noting that they considered the value of the cryptos on the day of the FTX failure and not the current values >:(
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I hope so and considering what happened with Mt.Gox we have to assume that the average distribution for such cases is 10 years but it would be nice if the case was closed sooner.
Everyone thinks the biggest impact will be on Bitcoin but the largest FTX holdings were tied to SOL more than Bitcoin.
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I suspect that the vast majority have already been sold, including some days when the market fell a lot, which may have been influenced by the sale of crypto for stables or dollars
What has been made public is that BTC and ETH only made up a very small part of the assets that were found after the investigation began, and most of them were still in various altcoins/tokens - and I wonder how some of those coins managed to survive considering to the fact that we are talking here about amounts in the billions?
~snip~
However, it is worth noting that they considered the value of the cryptos on the day of the FTX failure and not the current values >:(
If we take into account that at the time when FTX crashed, 1 BTC was worth about $30k, that would mean that those who kept only BTC there will get about 50% less than they should? I don't know about all the other altcoins, but to me it seems far from a fair deal - although some will say that it's better to get something than nothing.
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What are the predictions, will this have a positive effect on the crypto market? $16B is already a considerable amount, although I don't believe that investors will immediately start terminating assets.
I think it will not be positive for crypto market because most of the creditors will dump their assets at the market rate and that will cause huge dips in the market. We all remember the impact of Mt. Gox crediting on the market and the German Government's selling of Bitcoin on the market, and if FTX's does something similar then I believe market may see another huge dip.
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Somehow, it doesn't seem to me that it is realistic to expect that all those billions will be paid out at once, it will probably be a process that will last for months.
That would probably be like that considering the amount FTX team is going to distribute and I think this can be good news to the market as things are coming out gradually. I am hoping that a big chunk of the money would be reinvested into the cryptocurrency industry for good. All in all, this is actually a very good news as justice is now starting to be given to the victims of the big FTX fiasco. Whether this can create upward movements in the industry or a short-term dip can happen...those are remain to be seen. I am more inclined to think that this can be another push for the Uptober idea.
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I think it will not be positive for crypto market because most of the creditors will dump their assets at the market rate and that will cause huge dips in the market.
~snip~
Haven't we already concluded that the payouts should be in fiat and not in crypto? If the majority of cryptocurrencies have already been liquidated and if the payouts will be relatively fast, maybe this can have some kind of positive impact on the crypto market - otherwise, you shouldn't expect miracles because many will use the money for other purposes.
Coins from Mt.Gox were valued at over $9 billion, so even though it was a combination of fiat, BTC and BCH payments, I did not notice that there were any serious disturbances in the market.
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If we take into account that at the time when FTX crashed, 1 BTC was worth about $30k, that would mean that those who kept only BTC there will get about 50% less than they should? I don't know about all the other altcoins, but to me it seems far from a fair deal - although some will say that it's better to get something than nothing.
I voted against it when I could. But the majority chose to receive the money in this way anyway
Unfortunately, I even agree that it's better to get paid under these conditions, than to take a few more years and maybe not get paid at all, since the longer it takes, the more expensive the whole process of lawyers, companies, justice etc. becomes
At least we can receive and try another opportunities with the money
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I voted against it when I could. But the majority chose to receive the money in this way anyway
~snip~
I didn't follow closely what was happening in terms of compensation to clients, but you say (if I understood correctly) that it was actually the clients who chose fiat instead of crypto? Maybe for some (and in some cases) it makes sense to choose the fiat option, but to me it would be much more logical (fairer) if everyone could choose which option they want.
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I didn't follow closely what was happening in terms of compensation to clients, but you say (if I understood correctly) that it was actually the clients who chose fiat instead of crypto? Maybe for some (and in some cases) it makes sense to choose the fiat option, but to me it would be much more logical (fairer) if everyone could choose which option they want.
I'll try to summarize a bit ;)
- The process has been going on for a few months now
- We had to recognize how much we had in FTX, do the KYC, access our account there and do 2FA
- We were told that the amounts paid would be in fiat, at the prices on the day FTX collapsed
If you had 1 BTC and it was worth 30k, you'd get 30k
- Then they informed us that they had recovered even more than they owed their clients, so they were going to pay an extra 10% to each client.
Some larger clients filed lawsuits, obviously to receive cryptos, not fiat
- A few weeks ago there was a document for all customers to fill out, and in it you could vote on whether you would prefer to receive it as agreed, or whether you wanted it in cryptos.
The vast majority voted to receive the agreed amount, as it is likely to be much quicker and more guaranteed than trying to get the cryptos back.
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Haven't we already concluded that the payouts should be in fiat and not in crypto? If the majority of cryptocurrencies have already been liquidated and if the payouts will be relatively fast, maybe this can have some kind of positive impact on the crypto market - otherwise, you shouldn't expect miracles because many will use the money for other purposes.
If those have been liquidated then it won't have any adverse impact on the market but if those haven't been liquidated then those will have to be liquidated first before they will be able to pay creditors with fiat.
I'm not sure what's going to happen but there's high chance that those who get their money may use it for something else as most of that got dishearten when FTX collapsed and they might consider crypto as a bad investment after that incident.
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If we take into account that at the time when FTX crashed, 1 BTC was worth about $30k, that would mean that those who kept only BTC there will get about 50% less than they should?
I voted against it when I could. But the majority chose to receive the money in this way anyway
Actually this is unfair, because how the value of Bitcoin is increasing. However, it may also be because FTX has various considerations, especially their ability to return the funds of the holders on the exchange. It's just that, this is still unfair.
But as you said, people may not want to think complicatedly anymore, as long as their money comes back, they are already very relieved. Because after all, they must be very sick, leaving the money on the exchange and not being able to take it even when the average coin price has increased drastically. Not to mention, when you want to claim it also has to go through a complicated process. That's why this is actually a pity for the holders there. But once again, they may not have any other better choice, the important thing is that their assets are back, that might be enough rather than demanding high but in the end not getting it at all.
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I'm not sure what's going to happen but there's high chance that those who get their money may use it for something else as most of that got dishearten when FTX collapsed and they might consider crypto as a bad investment after that incident.
Of course there are people who will never get back to crypto, unfortunately
But at least in my case, my plan is to get 50% and leave in fiat, and 50% to buy BTC and leave in a cold wallet to hold for some years
Actually this is unfair, because how the value of Bitcoin is increasing. However, it may also be because FTX has various considerations, especially their ability to return the funds of the holders on the exchange. It's just that, this is still unfair.
Yes, it's very unfair, I agree and I've been angry enough, but if you look at it coldly, it's better to take what you've got and move on with new opportunities
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I didn't follow closely what was happening in terms of compensation to clients, but you say (if I understood correctly) that it was actually the clients who chose fiat instead of crypto? Maybe for some (and in some cases) it makes sense to choose the fiat option, but to me it would be much more logical (fairer) if everyone could choose which option they want.[/size]
I'll try to summarize a bit ;)
- The process has been going on for a few months now
- We had to recognize how much we had in FTX, do the KYC, access our account there and do 2FA
- We were told that the amounts paid would be in fiat, at the prices on the day FTX collapsed
If you had 1 BTC and it was worth 30k, you'd get 30k
- Then they informed us that they had recovered even more than they owed their clients, so they were going to pay an extra 10% to each client.
Some larger clients filed lawsuits, obviously to receive cryptos, not fiat
- A few weeks ago there was a document for all customers to fill out, and in it you could vote on whether you would prefer to receive it as agreed, or whether you wanted it in cryptos.
The vast majority voted to receive the agreed amount, as it is likely to be much quicker and more guaranteed than trying to get the cryptos back.
Thanks for the additional clarifications, now some things are clearer - the majority chose a quick solution, although for some it means that they will receive much less than they might have received if they had chosen payment in cryptocurrencies that they had on CEX.
The new news is that Bankman's girlfriend/lover has been sentenced to 2 years in prison and has to forfeit as much as $11 billion - I don't know if it's the money we're talking about here or if there's more money out there somewhere?
Caroline Ellison, who is also the ex-girlfriend of former FTX CEO Sam Bankman Fried, pled guilty in December 2022.
Ellison told the court in March during Bankman-Fried’s criminal trial that he directed her to commit the crimes that led to the downfall of FTX. Ellison will also have to forfeit about $11 billion and can serve her sentence at a "minimum- security facility,"
+1
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If we take into account that at the time when FTX crashed, 1 BTC was worth about $30k, that would mean that those who kept only BTC there will get about 50% less than they should?
I voted against it when I could. But the majority chose to receive the money in this way anyway
Actually this is unfair, because how the value of Bitcoin is increasing. However, it may also be because FTX has various considerations, especially their ability to return the funds of the holders on the exchange. It's just that, this is still unfair.
But as you said, people may not want to think complicatedly anymore, as long as their money comes back, they are already very relieved. Because after all, they must be very sick, leaving the money on the exchange and not being able to take it even when the average coin price has increased drastically. Not to mention, when you want to claim it also has to go through a complicated process. That's why this is actually a pity for the holders there. But once again, they may not have any other better choice, the important thing is that their assets are back, that might be enough rather than demanding high but in the end not getting it at all.
This pain is very hurt granted by asset holders for instance when they notice that the price of the coin is rising they cannot access their funds. I would like to say that people prefer to take what is less satisfying in the process because there is more uncertainty if they go to court to sue hoping to get more but get nothing at all. It has indeed become a very tight decision for many, and it is rather sad, that such a time has come.
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I hate that I was rightly sceptical, but the whole thing is going worse than the most pessimistic predictions.
FTX Creditors Could Receive 10% to 25% of Their Crypto Back -Link (https://beincrypto.com/ftx-creditors-crypto-returned-impact/)
- We were told that the amounts paid would be in fiat, at the prices on the day FTX collapsed
If you had 1 BTC and it was worth 30k, you'd get 30k
Even worse, Bitcoin’s price was $16,000 at the time of the FTX crash.
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The new news is that Bankman's girlfriend/lover has been sentenced to 2 years in prison and has to forfeit as much as $11 billion - I don't know if it's the money we're talking about here or if there's more money out there somewhere?
Caroline Ellison, who is also the ex-girlfriend of former FTX CEO Sam Bankman Fried, pled guilty in December 2022.
Ellison told the court in March during Bankman-Fried’s criminal trial that he directed her to commit the crimes that led to the downfall of FTX. Ellison will also have to forfeit about $11 billion and can serve her sentence at a "minimum- security facility,"
+1
No, it's money the US justice system will take from you if it's anyhow related to this case or you manage to hit the jackpot again.
Let's assume you go bankrupt, the judge will look at the damage you caused and set a sum, usually higher than what you ever had making sure so that you're never able to take advantage of any hidden money, Sam got 11 billion in forfeiture, Ellison 13, both judges know they will never be able to pay this but the sums are related to the damages caused, much like those 7 life sentences, nobody is going to spend 600 years in prison.
So no, there is no extra money there, and of course not 24 billion!