FTX Creditor Recovery Cut Down to 9–46% Despite 143% Fiat Plan
FTX creditor recovery go fit deliver only 9–46% of wetin claimants originally hold when dem adjust am for current crypto prices. This one no be like the 143% fiat payout plan wey dem get. The first US$1.2 billion distribution for claims wey no reach US$50,000 finish for February. The second round wey be US$5 billion start for May. For today rates, 143% fiat payout just cover 22% of BTC, 46% of ETH and 12% of SOL. This FTX creditor recovery shortfall show how volatile crypto valuation be wahala. Creditors fit try get extra recovery through airdrops from projects like Paradex. Sunil Kavuri warn say the rising crypto price since FTX bankruptcy filing plus scams fit make real returns reduce more. The bankruptcy plan dey depend on over US$15 billion wey dem don recover from reserves, clawbacks and token sales. Meanwhile, Sam Bankman-Fried appeal hearing dey set for November 4. Traders suppose dey watch for possible sell pressure wey fit come from big token distributions.
Bearish
The reduced effective recovery percentages for BTC, ETH, and SOL terms, because of high crypto prices and big token distributions, fit make creditors sell recovered tokens, wey go increase supply and put pressure for price go down. For short term, big distributions and uncertainty about recovery fit cause sell-offs. For long term, once payouts finish and recovery process stable, e fit reduce some pressure but di initial impact likely be bearish.