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FTX Debtors Evaluate Bids for Dormant Crypto Exchange’s Revival

Bitcoin.com

Bitcoin News / Bitcoin.com 43 Views

Insiders reveal that FTX creditors are sifting through bids from various entities eager to breathe life into the dormant crypto exchange. The company’s investment banker highlighted that FTX interacts with “multiple parties every day.”

FTX Creditors Sift Through Offers for Exchange’s Possible Reawakening

Throughout the year, whispers of FTX’s potential revival have surfaced approximately four times. During his first interview post-FTX collapse in January 2023, FTX’s restructuring head, CEO John J. Ray III, hinted at a resurgence. In a subsequent April hearing, the topic resurfaced. By mid-June, murmurs of “FTX 2.0” were in the air, and with each whisper, the value of FTX’s native crypto asset FTT spikes.

On October 24, Kevin M. Cofsky, the financial strategist from Perella Weinberg Partners representing FTX, said that negotiations were underway, according to a report by Bloomberg’s Steven Church. Cofsky explained that the deal could manifest as either a full acquisition or a collaborative partnership. While he remained tight-lipped about potential suitors, he noted:

We are engaging with multiple parties every day.

Reacting to this buzz, FTX’s native token experienced an uptick on Tuesday, buoyed further by the wider crypto market’s current momentum. Despite the fact that the native coin, known as ftx token (FTT), hasn’t been a focal point in the official “FTX 2.0” discussions, market players are optimistic about its potential upswing. Since the exchange’s downfall, FTT has been hovering just above a dollar. However, with the revelation of Cofsky’s insights, FTT surged by over 6%, touching approximately $1.13 apiece.

Currently, 28,533 distinct entities possess FTT, but its distribution is heavily concentrated. Presently, the top 100 stakeholders hold 98.65% of FTT, with FTX creditors dominating the largest FTT wallet at 59.55%. FTX also boasts the second and fourth-largest wallets, holding 13.94% and 3.54% respectively. Binance, the third largest holder, commands 9.88% of all the FTT. Interestingly, aside from Binance, the top five are all internal entities, with the fifth wallet, holding 2.73%, under the stewardship of Alameda Research and overseen by FTX debtors.

FTT isn’t the sole coin with ties to bankruptcy still retaining value. The celsius network (CEL) coin stands at $0.15 each, while Voyager’s VGX trades at about $0.11 per unit. These bankruptcy-linked coins have outperformed others like terra classic and terrausd classic, which have faced steeper declines.

What do you think about the possibility of an FTX reboot? Share your thoughts and opinions about this subject in the comments section below.


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