FTX creditors are witnessing a surge in claim prices, reaching almost 80 cents to the dollar, in anticipation of the January 25, 2024, court hearing. Following this development, it is observed that FTX’s FTT token has significantly surged by over 8%.
Cherokee Acquisition reports a significant surge in claim prices
Creditors are optimistic that the court’s ruling will turn in their favor, supporting their demand for repayments in cryptocurrency rather than the proposed fiat alternatives. Cherokee Acquisition, a specialized investment banking firm navigating FTX’s bankruptcy claims, reports a significant surge in claim prices.
The Claims Market, managed by the claims firm, states a sustained upward trend, attributing it to the expectation surrounding the upcoming court hearing where FTX aims to secure approval for its list of cryptocurrency prices.
FTX’s proposed repayment plan revolves around repaying creditors based on cryptocurrency prices lasting on the day of the exchange’s bankruptcy. However, creditors remain determined in their preference for an “in-kind” payment, focusing solely on the quantity of lost tokens and not market prices at the time.
A report from Cherokee Acquisition and Claims Market data also reveals that FTX claims surpassing $3 million have witnessed an impressive 80% surge. This surge in claim pricing highlights the growing confidence creditors have in securing substantial repayments. Other bankrupt crypto companies, such as Alameda Research, Genesis Global, and Three Arrows Capital, have also experienced significant boosts in claim prices, rising by approximately 45%, 67%, and 32%, respectively.
FTX’s FTT technical analysis and market performance
Despite all these claims, currently, FTX’s FTT token is trading near $2.76, and in the last 24 hours, it experienced over 8% upside momentum. If we look at FTT over a longer period, in the last 7 days, the FTT price experienced over 15% of downside momentum, and in the last 30 days, it experienced over 27% of downside momentum.
According to an expert’s technical analysis, as overall cryptocurrencies are experiencing a bearish momentum, following, the FTT token is forming a double bottom pattern on a daily time frame. However, the current price level is crucial. If this ongoing FTT bullish momentum breaches the $3.2 level, then in the future, we may see $5. But, if the FTT token falls by 9% and closes below $2.37, then in the coming days, we may see a bearish move till $1.42.
