At a critical moment in the world of cryptocurrency, FTX is set to reimburse customers up to $22 billion. This development could have a significant impact on the prices of Bitcoin (BTC) and Solana (SOL), potentially leading to a significant increase in their value.
Cryptocurrency analyst Xremlin stated that this massive cash outlay could reinject most of the funds back into the cryptocurrency market, acting as a catalyst for growth this year. FTX will distribute $16 billion in cash to observing cryptocurrency traders in the fourth quarter, where we will see billions of buying pressure coming soon.
Xremlin recently emphasized the importance of the upcoming distribution, stating that it will include returning $16 billion in cash to those already part of the cryptocurrency ecosystem. The analyst expects a large portion of this fund to be reinvested in the market, especially targeting various tokens, primarily Bitcoin and Solana. The influx of this fund may generate significant buying pressure, potentially causing the prices of these cryptocurrencies to rise.
The origin of the $16 billion cash injection stems from a settlement between FTX and U.S. government agencies. As part of the settlement agreement, assets purchased with misappropriated client funds were sold. These assets include shares in cryptocurrencies, tech companies, venture capital funds, and real estate.
FTX had previously invested in shares of the struggling AI startup company Anthropic, which received $6.4 billion in available cash. However, some customer dissatisfaction arises as customer claims are settled based on cryptocurrency prices from January 2022 when FTX announced bankruptcy.
Despite these complaints, the court continues to move forward with the plan for creditors to vote on the liquidation strategy. If the plan receives enough votes, it will receive final approval from the court.
Notable dates include July 16, 2024 (when FTX customers must vote on the bankruptcy liquidation plan) and August 1, 2024 (when Judge John Dorsey will make a ruling on the approval of the bankruptcy liquidation plan). If the proposed plan is approved, funds are expected to start being distributed to customers by the end of the third quarter of 2024, potentially injecting liquidity into the token purchase market. This schedule also coincides with the U.S. elections, which may lead to increased market volatility.