- FTX.com, a once-defunct cryptocurrency exchange, has submitted a Reorganization proposal to the U.S. Bankruptcy Court.
- The FTX.com revival would be limited to offshore clients.
- After the announcement, the price of the FTT token surged more than 15% from $1.32 to $1.59.
The inactive crypto exchange FTX.com has put forth a preliminary “Plan of Reorganization” with the U.S. Bankruptcy Court, presenting a faint possibility for the exchange’s revival. The suggested plan details a potential restart, but with a stipulation – it would exclusively cater to “offshore customers.”
The FTX Debtors have submitted their Initial Plan of Reorganization along with a summary term sheet to garner creditor feedback on the proposal from stakeholders. For further details, visit: https://t.co/bDy7QdQ5Tx
— FTX (@FTX_Official) August 1, 2023
Following its downfall in November 2022, along with its 101 debtors, FTX.com encountered a tumultuous period in the crypto market, characterized by numerous controversies. Conversely, the current application aims to tackle its financial issues by categorizing creditors, with one group of claimants provided the chance to revive the exchange with assistance from third-party investors if they consent to the terms.
Importantly, this proposed restructuring has sparked concerns among FTT token holders. According to the plan, they would not receive any compensation, leaving them without a stake in the potential relaunch of FTX.com.
Nevertheless, following the announcement, the price of the FTX native cryptocurrency FTT increased by over 15%, rising from $1.32 to $1.59. As of this writing, the FTX Token was trading at $1.47, with a 24-hour trading volume of $34.3 million, reflecting a 303% increase.
FTX Token (FTT) Price Chart (Source: Tradingview)
On a brighter note, the daily price chart for FTT suggests a short-term bullish trend, as the current price stands slightly above the 50-day exponential moving average (EMA). Furthermore, the daily Relative Strength Index (RSI) indicates that the cryptocurrency is in the neutral zone (53.57).
