FTX Token (FTT), the native cryptocurrency of the bankrupt crypto exchange FTX, has experienced bullish momentum amid anticipated bankruptcy distributions.
On September 29, FTT surged over 70%, reaching multimonth highs and briefly touching $2.70 for the first time since March 2024, according to CoinGecko data.
FTT had been trading around $1.40 for most of the past month before this dramatic spike in daily returns. However, after the surge, it tumbled in price, trading at approximately $2.10 as of September 30, which still reflects an increase of around 30% over the previous 24 hours, based on data from CoinGecko.
The rally in FTT was fueled by rumors circulating on social media that the FTX bankruptcy estate would begin distributing reimbursement funds to creditors and customers on September 30.
Despite the excitement, the official Chapter 11 filing indicates that the bankruptcy plan has yet to receive approval. A court hearing for the approval of this plan is scheduled for October 7.
If the plan receives the green light, the FTX trustee will initiate payments to creditors with claims under $50,000 by the end of 2024. Conversely, creditors with larger claims may have to wait until the first or second quarter of 2025 to receive their distributions.
This potential timeline for distributions has led to increased speculation and interest in FTT, as investors look to capitalize on any positive developments related to the bankruptcy proceedings.
As the situation unfolds, many will be watching closely to see how the upcoming court decisions will impact FTT and its future prospects in the market.