Could the FTX payout bring money back to the crypto market?

[rdluffy]

The lawsuit is still ongoing, but it seems that users will get their money back from FTX
We still don't know if it will be in stable or fiat. The SEC could possibly intervene to demand payment in fiat

But the point I want to make is that FTX will pay around 16 billion dollars in total (estimated value)
All users are crypto users and we could possibly see this money returned to the crypto market

Do you think it could be relevant?
Can it influence the market to have more price hikes or do you think most will take the money and invest in other markets?

Source of Image

[philipma1957]

Based on mount gox it will take at least 3-5 years for payouts. So maybe it helps down the road maybe 2028 it helps.

Not in 2024 or 2026.

[macson]

The lawsuit is still ongoing, but it seems that users will get their money back from FTX
We still don't know if it will be in stable or fiat. The SEC could possibly intervene to demand payment in fiat

But the point I want to make is that FTX will pay around 16 billion dollars in total (estimated value)
All users are crypto users and we could possibly see this money returned to the crypto market

Do you think it could be relevant?
Can it influence the market to have more price hikes or do you think most will take the money and invest in other markets?

Source of Image

Before going bankrupt, FTX was one of the largest exchanges in the world and sponsored many major world events, but even if FTX keeps their promises, it will not have a big impact on the market ^{(even if they manipulate the market)}, they have damaged public trust.

[armanda90]

Absolutely not yet, the exchange market have been bankrupt have difference cases with other exchange like got hack cases and received refund later what happen with Mt. Gox exchange. pessimistic with FTX will refund for their costumer almost one years since bankrupt and the developer run away until arrested but not release yet how their member fund will get back or not.

Many exchange before have cases such as FTX and almost never refund their member assets, I believe all assets of FTX exchange have run away by their developer and get enjoying under arrest only than refund for their member assets.

[SmartGold01]

The lawsuit is still ongoing, but it seems that users will get their money back from FTX
We still don't know if it will be in stable or fiat. The SEC could possibly intervene to demand payment in fiat

But the point I want to make is that FTX will pay around 16 billion dollars in total (estimated value)
All users are crypto users and we could possibly see this money returned to the crypto market

Do you think it could be relevant?
Can it influence the market to have more price hikes or do you think most will take the money and invest in other markets?

Source of Image

One thing I love about cryptocurrency investor is that when there is any opportunity they seems not to cease it because they knows that it would yield something big in the future, even though they incur significant lost at the duration of doing that they still didn't care about it. But one thing for sure is that bitcoin has is yet to fully enter into bull run of 2025 so, even though this money is being paid out to their users they would still utilized this money and put them back into cryptocurrency bitcoin precisely.

[rdluffy]

Based on mount gox it will take at least 3-5 years for payouts. So maybe it helps down the road maybe 2028 it helps.

Not in 2024 or 2026.

I have a feeling that in this case, things will go faster than Mt.Gox, I bet 2025 because they already have the money to pay back the victims/users
All users, including me, already submitted KYC, we voted, we checked our funds etc

Before going bankrupt, FTX was one of the largest exchanges in the world and sponsored many major world events, but even if FTX keeps their promises, it will not have a big impact on the market ^{(even if they manipulate the market)}, they have damaged public trust.

I'm not saying about FTX and trust, it's about the money users will receive from FTX, and possibly going back to crypto market

...
pessimistic with FTX will refund for their costumer almost one years since bankrupt and the developer run away until arrested but not release yet how their member fund will get back or not.

Many exchange before have cases such as FTX and almost never refund their member assets, I believe all assets of FTX exchange have run away by their developer and get enjoying under arrest only than refund for their member assets.

The FTX group already has the money, it has been recovered not only in full, but has exceeded the amount they owe users (value in dollars)

[Mia Chloe]

Well op let me start wit the title of your post which obviously is a question.  Now when you refer to FTX bringing money to the crypto market, first thing I'll like to know is exactly how much? The crypto market is a simultaneously broad and volatile market making it a little difficult for certain amounts of equivalent fiat to have a noticeable effect on the market.
To better understand the direction of my point, take the bitcoin network into consideration for example, some whales per say, moving about say 100 bitcoins which  in fiat is an equivalent of over $586,000 may not have any noticeable effect on the bitcoin network especially in terms of price. However on the other hand that same amount would collapse a couple of other crypto markets.

[_act_]

Do you think it could be relevant?
Can it influence the market to have more price hikes or do you think most will take the money and invest in other markets?

But this was just a speculation. We do not know yet if the money would be in stable coin or fiat. But I read a news that FTX executive or so are warned not to let the money to be in stable coin. Be it in fiat or stable coin, it is possible that it might have good effect on cryptocurrencies because people will want to use the coin to buy coins like bitcoin. But we should know about how the coin would be distributed. Is it going to be distributed in days, weeks or months or years? The longer the distribution time will take the less would be the effect.

[philipma1957]

Absolutely not yet, the exchange market have been bankrupt have difference cases with other exchange like got hack cases and received refund later what happen with Mt. Gox exchange. pessimistic with FTX will refund for their costumer almost one years since bankrupt and the developer run away until arrested but not release yet how their member fund will get back or not.

Many exchange before have cases such as FTX and almost never refund their member assets, I believe all assets of FTX exchange have run away by their developer and get enjoying under arrest only than refund for their member assets.

in theory more than 75% of the funds were recovered.

but cases are very slow.

and if 3 billion usd worth  was  eth it has gone down to maybe 2 billion

and if 3 billion usd worth was btc it has stayed about 3 billion

lastly if 1 billion usd in alts was recovered  it is likely only 600 million

so I think i read 7 billion was recovered if they are all staying in the coins they were they are likely at 6 or maybe 5.5 billion.

only btc is close to 2021 numbers.

Still a lot of wealth.

No transparency on who holds the recovered funds.
No transparency on exact amount of each coin
Not transparency on time they will be distributed.

But one day billions will be dealth out.  Maybe 2028

[electronicash]

it will happen in few years. to which they will probably make it very timely to push the price down during the bear market. distributing the FTX payout during bear market is like a real boss manipulation while they are also going to be buying coins. i think it may also be the best time to buy along with the whales when they distribute these payout.

it should influence the market since investors will also dump their coins before the payout happens. i would probably do the same. why suffer when its an opportunity for everyone to make money.

[robelneo]

These investors will definitely continue to invest in cryptocurrency, seeing how robust the market is, but I'm sure they will learn where to put their money now, and this money could only have an impact if they are paid in full one time, but I guess it will likely be on an installment basis, so the impact in the market is not that relevant.

[Z-tight]

I am not sure creditors are getting their money anytime soon, so many times we thought mt.Gox was about to repay creditors, but they didn't until this year; ftx still has a few years ahead of us. However, to answer your question, it depends on the medium of payment, if they are paid in stablecoins, some customers might convert their stablecoins to BTC and other crypto, it also depends on how so many of them view the crypto industry right now.

[Zed0X]

I wish we could see the number of FTX users who quit after a horrible experience with the exchange and those who are used to that kind of situation. Not all of them are veterans for sure and I'm confident that a good percentage already hate crypto after that incident. The refunds they'll get are likely to be stored back to a savings account.

[SamReomo]

Can it influence the market to have more price hikes or do you think most will take the money and invest in other markets?

If they get the money in fiat then most of the investors might avoid investing their money in crypto again due to fear. However, if they get their money in crypto stable coins then there's huge chance that most of those investors might choose another trusted platform and invest their money in crypto again.

[Tribalchief]

Can it influence the market to have more price hikes or do you think most will take the money and invest in other markets?

The entire refunding process will definitely take time, but it’s uncertain how long it will take, considering that FTX had a massive number of users before it went down. Considering that investors' money will be paid out in batches, it won't really influence the market in any way, since all the funds won't be returned once.

But we can't be too sure of what some of these investors might want to do with their previously lost funds. Some may choose to stay in the crypto space by investing in new crypto related projects, while others might just want to cash out. But I don't think receiving their money in either stable coin or fiat will have any impact in their decision making on how to spend it.

What I am really curious about is how the funds of investors who have passed away will be handled. It’s certain that not all of them are still alive, so what will happen to those funds?.