FTX’s long-waited bankruptcy saga just took a new twist, but Presto Labs isn’t convinced it’s time to pop the champagne. On paper, FTX’s reorganization plan looks juicy – $16 billion in cash repayments set to flow back to creditors, but there’s a catch. According to the labs, this cash may not boomerang back into the crypto markets as many hodlers might hope.
The U.S. Bankruptcy Court in Delaware gave a green light to FTX’s Plan of Reorganization, almost two years after the exchange’s infamous implosion. The deal is a sweet one for creditors, offering 98% of them a whopping 119% of their claims back. But, hold on – this is only on paper, and the flow-back party is subject to some fine print and terms.
Presto Labs Waves Red Flags
Presto Labs thinks the community’s optimism might be jumping the gun. They sent out a note basically telling the market to cool its jets. Why? The research firm warns that it’s wishful thinking to assume creditors will dump their newly acquired cash into the market. “Making such a blanket assumption requires at least some analysis of the claimant composition,” Presto Labs stated. In short, they think it’s unclear if these creditors are even crypto-heads.
Plus, the cash flows won’t be immediate. The timeline is fuzzy. Payments start 60 days after the plan’s effective date, which hasn’t even been locked in yet. So, anyone banking on a quick market pump may be left hanging.
Market Shrugs, Bitcoin Takes a Breather
Despite the big news, crypto markets weren’t exactly jazzed. Bitcoin dipped 1.9%, down to $62,300, while Ether slid 2.2%, trading at $2,425. Georgy Slavin-Rudakov, CMO of B2BINPAY, brushed off the downturn. He said this dip was a healthy market correction after Bitcoin spiked past $64,000. According to him, the broader outlook for Q4 remains bullish, with Bitcoin potentially eyeing $75,000 by the year’s end. But Slavin-Rudakov’s bullishness isn’t universal.
The Token Trouble Nobody Wants
Meanwhile, Kaiko highlighted a deeper problem. Some tokens, like Solana (SOL) and Tron (TRX), have surged since FTX’s collapse. But for others, like Serum (SRM), OXY, and MAPS – tokens that FTX held massive positions in – the situation is trickier. Liquidating those tokens without tanking their value? A nightmare. FTX holds 99% of MAPS tokens and 97% of OXY. One wrong move, and those token prices could crash faster than a faulty smart contract.
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