In a recent report, digital asset brokerage firm K33, in bankruptcy cryptocurrency He suggested that refunds from exchange FTX could have upward effects on the crypto market.
The report states, “Mt. “While the repayments of Gox and Gemini creditors will have a downward effect on the market, FTX’s cash repayment may have an upward effect.”
Unlike Mt Gox and Gemini, which would repay creditors in the form of assets of the same nature, FTX sold assets to pay creditors in cash. K33 believes this could lead to an equilibrium in the market. “On net, buying pressure from cash buyers can neutralize selling pressure from redemptions of the same asset type,” P33 said.
However, K33 also noted that the timing of refunds could still impact the crypto market. While Gemini’s $1.7 billion repayment is expected to be made in early June, Mt. Gox’s $8.9 billion repayment is expected to be made by October 2024.
The report also stated, “If the court approves FTX’s restructuring plan, FTX plans to repay creditors within two months. While it remains unclear when or whether the plan will be approved, buyers are preparing for repayments to be made in the late 4th quarter of 2024.”
K33 concluded by stating that the different timing of these repayments could indicate a slow summer in the market and a strong end to the year.
*This is not investment advice.
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