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FTT Token Price Surge
Alamanda Research’s native token “FTT” surged nearly 93% before correcting to its current price. This event sent investors into a state of fear of missing out (FOMO), with questions like “Why is FTT rising?”
For the first time since November 9, 2023, the price of FTT reached an intraday high! This surge helped FTT break through multiple resistance levels. In addition, after a brief period of narrow range fluctuations, the exchange broke through the resistance trendline and hit a 7-month high.
The relative strength index (RSI) on the 1-day timeframe also showed a sharp increase, pushing FTT into the overbought zone and supporting the upward price trend.
In addition, the MACD indicator has also increased sharply on the chart with a green bar, indicating that the moving averages are recording a significant bullish trend. This reinforces the possibility that FTT price will continue its upward trend in the near future.
FTX creditors are expressing dissatisfaction with the amount of compensation they are about to receive as the collapsed exchange prepares to distribute $16 billion to repay lenders.
The cause of the controversy stems from the large fluctuations in cryptocurrency values since FTX filed for bankruptcy.
FTX Creditors Unhappy With Only 10-25% Repayment
FTX creditors will be repaid between 10% and 25% of the value of their crypto holdings. Notably, the repayment will be calculated based on the value at the time of FTX’s bankruptcy filing, when crypto prices were much lower. For example, Bitcoin (BTC) was worth just $16,000 at the time, while it is now worth around $65,000.
Creditors are upset with the decision to use the value of crypto at the time of the bankruptcy filing to calculate the repayment. They say the restructuring plan fails to compensate them for the losses they suffered, many of whom lost their life savings. Some creditors have also reported experiencing severe emotional distress, including anxiety and panic attacks, as a result of FTX’s collapse.
“As one victim shared in a post by Sunil Kavuri, an FTX creditor rights activist, ‘I don’t understand why the law doesn’t protect us, the investors, from this scam.’”
More comments continued to come in, reflecting the frustration and dissatisfaction of creditors. The U.S. Securities and Exchange Commission (SEC) also warned of potential protests, especially if FTX decided to repay creditors in stablecoins after the exchange collapsed.
The complaints come just weeks after FTX and Emergent Technologies reached a deal to secure $600 million in Robinhood shares to repay creditors. Notably, FTX founder Sam Bankman-Fried is also a co-founder of Emergent Technologies.
Under the terms of the deal, in a move made on September 6 by FTX CEO John Ray III in Bankruptcy Court, FTX will pay Emergent $14 million to cover administrative costs after dropping its claim to 55 million Robinhood shares and cash. The deal also paves the way for Emergent to move forward with its Antigua bankruptcy case.
FTX said the deal will help recover more money for creditors while avoiding litigation costs. It is seen as an important step in a restructuring plan aimed at maximizing value for all parties.
John Ray III said the reorganization plan was the result of “independent and good faith negotiations between the parties, without any collusion.”
