FTX Distribution Rumors Spark Market Volatility

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FTX,Crypto Distribution,FUD

Rumors circulating on social media suggest FTX will begin distributing funds to creditors as early as October 1st, sparking both panic selling and renewed interest in the exchange's native token FTT. However, official documents indicate a court hearing scheduled for October 7th to finalize the distribution plan, with smaller claims potentially starting late 2024 and larger claims not until 2025.

Rumors abound on crypto social media suggesting that the embattled exchange FTX will start distributing as much as $11 billion to creditors on Oct. 1.his 116,000 X followers to sell their ETH, ADA, and DOT before this week’s distributions while shilling SOL and SUI.his 720,000 X followers, “$16B in distributions from FTX will start happening tomorrow,” but suggested that degens would buy back in.

On Sept. 29, FTX creditor activist Sunil Kavuri said large accounts were “spreading false info.” However, he estimated that half of the claims, around $5.5 billion worth, won’t be reinvested in crypto.CNBC crypto trader Ran Neuner also dispelled the FUD stating that distributions would start within 60 days of the plan becoming effective.September 29, 2024

Despite the unfounded FUD, crypto markets were selling off during Monday morning trading in Asia. Total capitalization had fallen by 2.7%, with Bitcoin dropping to the $64,500 level after topping $66,000 over the weekend., has surged more than 50% over the past 24 hours. The exchange asset spiked to a seven-month high of $2.70 on Sunday before retreating to $2.19, which was still up 51% on the day.

FTT has now gained more than 70% over the past fortnight, largely driven by reimbursement rumors. However, the asset still remains down 97.5% from its all-time high of $84 in September 2021.One Weekly Email Can Change Your Crypto Life.Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions.

 

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