FTX

Despite long-awaited FTX repayments, the crypto market struggles. Why isn’t this bullish news boosting prices?

FTX Repayments Finally Begin—But Where’s the Market Rally?

After months of anticipation, FTX has officially started repaying creditors. Many expected this to trigger a bullish rally, injecting fresh liquidity into the market. However, the opposite is happening—crypto markets are deep in the red, and investor sentiment remains cautious.

FTT Token Spikes, Then Crashes

Following the reimbursement announcement, FTX’s defunct token (FTT) briefly surged as traders reacted. However, the rally was short-lived, and FTT quickly dropped back down. At the same time, major crypto assets posted losses, contradicting the widespread belief that repayments would fuel a market-wide rebound.

Why Aren’t Crypto Prices Rising?

Several factors may explain why FTX repayments haven’t triggered a rally:

1️⃣ Weak Market Sentiment – Despite bullish news, demand appears to be drying up. Analysts note that just months ago, similar headlines would have sparked a major surge.

2️⃣ Meme Coin Mania – Many investors who previously backed altcoins have shifted their focus to meme coins, diverting capital away from traditional tokens.

3️⃣ Institutional Dominance – With institutional investment at an all-time high, the crypto landscape is evolving, making historical patterns less reliable.

What’s Next for Crypto Markets?

The impact of FTX repayments remains uncertain. While $1.2 billion in liquidity has entered the market, it hasn’t sparked the expected rally. Instead, bearish momentum continues, leaving investors wondering if a shift is coming—or if crypto is entering a new phase of unpredictability.

A crypto community member recently questioned the accuracy of public information related to the defunct FTX exchange and its native token, FTT. Despite FTX’s bankruptcy, FTT is still trading, raising concerns about the validity of its current valuation.

FTX Token (FTT) Trading Despite Bankruptcy

The user pointed out discrepancies in FTX’s valuation, comparing it to publicly traded companies. Even with its bankruptcy status, FTT continues to trade at $2.03, according to data from an unnamed prediction market. The token has retained 17.65% of its all-time profit, which seems odd given FTX’s financial collapse.

The member shared concerns that this data might not accurately reflect the token’s true value. FTT may eventually be liquidated to pay creditors, potentially rendering it worthless. A disclaimer on the prediction platform warned users of this possibility, yet the data still seemed to rate FTX higher than several publicly traded companies.

Poll Raises Doubts About Data Accuracy

The conversation started when the user cited a poll about gambling habits in the U.S., which showed that men are almost twice as likely to gamble as women. The poll suggested that impulsive decisions and risk-taking tendencies were more prevalent among men. The user then questioned whether gender alone could account for the gap between market data and poll results, drawing a parallel to the questionable accuracy of FTX’s token data.

This crypto user’s argument is a broader critique of how prediction markets and public data may not always present the full picture, especially when evaluating a bankrupt entity like FTX.

Former FTX executive Ryan Salame has requested another delay in his prison sentence, citing ongoing medical treatment after a dog attack in June. This comes after a previous postponement in August.

Salame Seeks Further Prison Sentence Delay

Ryan Salame, the former co-CEO of FTX Digital Markets, has asked the court to push his prison surrender date from October 11 to December 7, 2024. His attorney filed the request, explaining that Salame still requires medical treatment after a severe dog bite. The injury, which occurred in June, led to emergency surgery, and doctors recommend continued care before he begins serving his sentence.

This is the second time Salame has sought a delay. His first request was granted in August, allowing him to postpone his original surrender date.

Government Opposes Second Extension

The U.S. government is not in favor of granting Salame’s second request for an extension. Although the court approved a previous delay in August, the government opposes the additional two-month postponement. Salame’s new request was filed just days before he was scheduled to begin his 7.5-year sentence for embezzlement and other crimes linked to FTX.

Salame’s Legal Troubles and FTX Collapse

Salame entered a plea deal in September 2023, admitting guilt to charges related to unlawful political contributions and running an unlicensed money transmission business. His sentencing stems from the broader investigation into the collapse of FTX, a cryptocurrency exchange founded by Sam Bankman-Fried. Bankman-Fried, who was sentenced to nearly 25 years in prison earlier this year, is just one of several FTX executives facing legal consequences. Others, including Caroline Ellison and Nishad Singh, also await sentencing.

Bankruptcy Developments and Customer Payouts

As Salame battles to delay his prison sentence, FTX’s bankruptcy proceedings continue to unfold. The collapse of the exchange left customers and creditors scrambling to recover billions of dollars in lost funds. Recently, U.S. bankruptcy judge John Dorsey approved a plan to distribute approximately $6.6 billion to FTX creditors, with the first payouts expected in the coming weeks.