- FTX.com, a previously defunct crypto exchange, has filed a Reorganization proposal with the U.S. Bankruptcy Court.
- The FTX.com restart would only be available to offshore customers.
- Following the announcement, FTT token price soared over 15% from $1.32 to $1.59.
Defunct crypto exchange FTX.com has filed an initial “Plan of Reorganization” with the U.S. Bankruptcy Court, offering a glimmer of hope for the exchange’s revival. The proposed plan outlines a potential restart, but with a catch – it would only be available to “offshore customers.”
The FTX Debtors filed their Initial Plan of Reorganization and a summary term sheet to facilitate creditor feedback on the plan with stakeholders. Read details here: https://t.co/bDy7QdQ5Tx
— FTX (@FTX_Official) August 1, 2023
Following its collapse in November 2022, along with its 101 debtors, FTX.com faced an explosive period in the crypto market, marked by several scandals. The current application, on the other hand, intends to address its financial concerns by classifying creditors, with one class of claimants granted the opportunity to revive the exchange with the support of third-party investors if they agree to the terms.
Notably, this proposed restructuring has raised concerns among FTT token holders. Under the plan, they would receive no compensation, leaving them with no share in the potential reboot of FTX.com.
However, After the announcement, FTX native cryptocurrency FTT price climbed by over 15%, from $1.32 to $1.59. At the time of writing, the FTX Token traded at $1.47, with a 24-hour trading volume of $34.3 million, representing a 303% surge.
On a more positive note, the daily price chart for FTT indicates a short-term bullish movement, as the current price is slightly above the 50-day exponential moving average (EMA). Additionally, the daily Relative Strength Index (RSI) shows the crypto in the neutral zone (53.57).
