Analysts: FTX repayment in a short period of time has limited positive impact on the market
Retail investors' enthusiasm for FTX's court-approved bankruptcy plan may be premature, according to a new report from Presto Labs. In the report, analysts questioned whether $16 billion in cash paid to creditors as part of the plan would flow back into the cryptocurrency market.
FTX expects the total value of property available for distribution to be between $14.70 billion and $16.50 billion. This amount includes assets controlled by various entities.
Presto Labs said: It is too early to assume that creditors will put this cash directly into the market. Making such a general assumption requires at least some analysis of the composition of creditors, and as far as we know, no one has done this publicly.
The research firm notes that repayments will begin within 60 days of the plan's effective date, but the exact date has not yet been determined. This timeline suggests that any potential market impact will not happen anytime soon.