$16B from FTX to its creditors

[examplens]

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://x.com/Bitcoinsensus/status/1837137137499553947

[MrSpasybo]

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 ^^

[rdluffy]

I posted about FTX here  : 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

[KingsDen]

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  : 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.

[Cryptsafe]

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.

[yhiaali3]

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.

[Crwth]

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.

[NicNacCoin]

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://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.

[NotATether]

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).

[Cryptsafe]

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.

[Lucius]

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.

[rdluffy]

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 

[hugeblack]

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.

[Lucius]

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.

[SamReomo]

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.