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

[TomPluz]

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?

We already know that FTX and what happened to it are all now part of the cryptocurrency history and when somebody will be bringing in the name Sam Bankman-Friend we would immediately associate him with his mismanagement of one of the biggest crypto-based platforms operating around the globe. Now, is FTX still relevant and the answer is YES until such time when all the things that should be settled are settled. Users, investors and creditors should get their money back according to what is left in there and what can be recovered. We can never know how much of the coming money to be returned will be reinvested with the crypto market but am sure a big percentage of that will be and would this be influencing the prices in the market...the answer to that is yes but it would be minimal, am not seeing a big impact on this in the market since FTX is already counted in with the current market positions.

[Dr.Bitcoin_Strange]

Well, I don't think it will have any influence in the market because based on what I have read about that case, every victim will not just get their money back at once, the order for repayment can last for more than one year and which the re-payment is scheduled for a gradual procedure, it will not really have any influence on the market.

[Fivestar4everMVP]

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?

Aside what other users here have said that this money won't likely enter the market once, which is to say that it might take some years before the affected users get a full refund of their lost money.
16 billion dollars is a lot of money to be honest, but I personally do not think that this entering the market again will be relevant, some who have moved on and earned a good living even in the absents of this funds may likely invest the money back into crypto, which may cause the price of some assets to rise.
But on that other hand, those who are broke and looking forward to the disbursement of this funds may likely sell and cash it out, which may cause the price of some assets to drop.
So, what I see here is a market that is side ways as a result of some people selling and some people buying.
But all the same, I wish all the victims good luck in getting their lost funds back.

[philipma1957]

if there is a long time before coins are given back and btc is big say 250k or 300k.

I would think it would drop btc if released at a high price in say 2029 or so.

but I do not worry about 2029.

[Lucius]

@philipma1957, from what I've read things seem to be moving at light speed here compared to Mt.Gox, so that gives hope that the victims will still be compensated much sooner than in a few years. Maybe that is the goal of some people, because if the money were returned, then the sentence for Bankman could be reduced or the president (whoever he was) could pardon him on that basis.


As for the money, whether it is $7 billion or $16 billion, it is certain that the money will not be paid out all at once, nor will everyone immediately invest in cryptocurrencies. After all, when you look at the amounts traded in a 24-hour period, the data shows that BTC and ETH alone have about $50 billion in trading volume.

[ZAINmalik75]

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

If they paid in fiat, it would be a good thing because all that money would enter the crypto market, increasing demand and potentially leading to a pump. However, if they made that repayment in crypto, the market could crash since $16 billion is no small amount. It would cause a bigger dump than the events in Germany and August did.

This will affect BTC in the short term, but it should recover quickly. As far as I know, FTX will not pay in cryptocurrency. Instead, they will likely use other forms, maybe even a diversified approach. The SEC isn’t likely to intervene to ensure they repay in fiat, but they might push for repayment in crypto.

[philipma1957]

@philipma1957, from what I've read things seem to be moving at light speed here compared to Mt.Gox, so that gives hope that the victims will still be compensated much sooner than in a few years. Maybe that is the goal of some people, because if the money were returned, then the sentence for Bankman could be reduced or the president (whoever he was) could pardon him on that basis.


As for the money, whether it is $7 billion or $16 billion, it is certain that the money will not be paid out all at once, nor will everyone immediately invest in cryptocurrencies. After all, when you look at the amounts traded in a 24-hour period, the data shows that BTC and ETH alone have about $50 billion in trading volume.

well i read a lot but not so much lately.

there was 9 bill missing and in under three months about 7 bill was found.

but I am going from memory of 2022 fall. not from recent articles.

mt gox was vanished for a longer time. and it could be the funds will be sent out quicker. than mt gox which was near 8 year time.

so maybe four year time here which would be 2026.

they won’t dump it all in a week or so. I would figure payout will be spread for months.

[rdluffy]

if there is a long time before coins are given back and btc is big say 250k or 300k.

I would think it would drop btc if released at a high price in say 2029 or so.

but I do not worry about 2029.

@philipma1957, from what I've read things seem to be moving at light speed here compared to Mt.Gox, so that gives hope that the victims will still be compensated much sooner than in a few years. Maybe that is the goal of some people, because if the money were returned, then the sentence for Bankman could be reduced or the president (whoever he was) could pardon him on that basis.

Yes, it seems that things are happening more quickly than others
Mt Gox was an extremely long case, but we can take as an example Celsius which recently had problems an, has already paid more than half of the users. Celsius is/were a recent case too


Source

As I said, FTX has already done several KYC procedures, voting etc and it seems that there is a general movement for things to go quickly, obviously it is a big and billionaire process, but already have enough interest
And VERY important, they have the recovered money in hand, it's not missing or lost, it's in their accounts right now

[Rubel007]

If FTX pay 98 percent of investors money then it would definitely be a good move. This will be a breakthrough for the crypto platform, even if people's trust does not fully increase. As far as I know in this matter they will pay their customers those who have 50 thousand dollars or its equivalent investment. They will pay in fiat very soon for those who invested. However, it is not yet certain whether the bankruptcy court has approved it or not. Personally I think this means If customers are returned then the market will become strong again.

[Bobcrypto]

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

The situation of the FTX is different, when compared to MTgox exchange hack, and the users settlement benefits that that took many years. FTX was a case of misappropriation of funds by the former CEO who is currently serving jail terms.
Now concerning FTX users settlements, it depends on the coin to be used for the settlement; if the payments will be on
stable coins, then it may bring more investment into the crypto market. If payment will be on Bitcoin or altcoins, then we may experience a dump on the crypto market. This is imy opinion.

[MUGNIA]

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.

The word installment, has convinced that the price will not return, because the movement continues, and we can see how much payment power there is in installments of the funds available,

[luckyledger]

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

The situation of the FTX is different, when compared to MTgox exchange hack, and the users settlement benefits that that took many years. FTX was a case of misappropriation of funds by the former CEO who is currently serving jail terms.
Now concerning FTX users settlements, it depends on the coin to be used for the settlement; if the payments will be on
stable coins, then it may bring more investment into the crypto market. If payment will be on Bitcoin or altcoins, then we may experience a dump on the crypto market. This is imy opinion.

Interesting. Thanks for sharing it up!
It seems logical to me if your case is true that the dump would be there.
The question is - how much?

[taufik123]

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.

The word installment, has convinced that the price will not return, because the movement continues, and we can see how much payment power there is in installments of the funds available,

Making payments in installments to affected users certainly still gives great hope for a significant increase if it is done correctly.
But the obstacle is that FTX's reputation has been destroyed and will not be able to recover as usual, but the return process depends on whether it is returned in the form of its original coins such as FTX, BTC or will only be converted to Stablecoins at a certain coin price when FTX closes.

But I don't know, this return will determine whether FTX can rise again or not, or will just be abandoned later.

[rdluffy]

Making payments in installments to affected users certainly still gives great hope for a significant increase if it is done correctly.
But the obstacle is that FTX's reputation has been destroyed and will not be able to recover as usual, but the return process depends on whether it is returned in the form of its original coins such as FTX, BTC or will only be converted to Stablecoins at a certain coin price when FTX closes.

But I don't know, this return will determine whether FTX can rise again or not, or will just be abandoned later.

We already have some answers to these questions:

FTX is not going to work again. There was an attempt to sell the exchange for a possible return as FTX 2.0, but there were no buyers
Payments will be made in USD dollars, we're still not sure if it will be in fiat or stable, but I'd say that only a couple of people who file a lawsuit with a private lawyer can possibly be able to recover the amount in coins such as BTC and SOL, because the idea is to recover the amount in USD that the coins valued at the moment of the problem, so BTC was at 20k if I'm not mistaken

[taufik123]

FTX is not going to work again. There was an attempt to sell the exchange for a possible return as FTX 2.0, but there were no buyers
Payments will be made in USD dollars, we're still not sure if it will be in fiat or stable, but I'd say that only a couple of people who file a lawsuit with a private lawyer can possibly be able to recover the amount in coins such as BTC and SOL, because the idea is to recover the amount in USD that the coins valued at the moment of the problem, so BTC was at 20k if I'm not mistaken

That will be a fact that will be debated by many former FTX users.
Although FTX can bounce back, it will just be abandoned and people don't believe it anymore.

And returns in USD are the easiest way for them to save that expense, but with the help of lawyers, users can get in the form of their coins.
It will probably only be done by users with a considerable amount of assets.