K33 Research: FTX cash repayment may trigger demand for currency purchases! Optimistic about the market situation of cryptocurrency at the end of the year

According to a report by The Block, research firm K33 Research believes that the creditor repayment plan of the failed cryptocurrency exchange FTX "may be viewed as a bullish factor" because the cash repayment may trigger The demand for currency purchases from recipients further offset the selling pressure caused by the physical repayment of Mt. Gox and Gemini.

FTX cash repayment may trigger buying demand

The repayment plan of collapsed cryptocurrency exchange FTX may have a bullish impact on the cryptocurrency market, which is consistent with Mt The in-kind repayment of .Gox and Gemini creditors is completely different.

Because Mt.Gox and Gemini both repay creditors in kind, while FTX sells assets to pay creditors in cash. Looking at the repayment amounts of these three companies: purchasing demand from cash recipients may offset the selling pressure caused by physical repayments.

The repayment period affects currency prices, and the crypto market may perform better at the end of the year

K33 pointed out that the repayment period may still affect the cryptocurrency market. Gemini expects to repay $1.7 billion worth of debt in early June, and Mt. Gox expects to repay $8.9 billion worth of debt by an October 2024 deadline.

FTX’s bankruptcy reorganization team submitted a revised reorganization plan to the Delaware Bankruptcy Court on May 7. The plan is expected to centrally distribute FTX’s assets in bankruptcy to global customers and creditors. FTX expects the total property value currently available for distribution to be between $14.5 and $16.3 billion. If approved by the bankruptcy court, 98% of FTX's creditors will receive 118% of their allowed claims within 60 days of the plan's effectiveness.

K33 pointed out that although there is still uncertainty when or whether the plan will be approved, it is very likely that the repayment will be by the end of the fourth quarter of 2024.

These differences in repayment times again point to a market that was slow to grow over the summer and then solidly towards the end of the year.

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