FTT Token Soars 70% on Rumors of Impending Bankruptcy Distributions

The FTX Token (FTT-USD) has soared by more than 70% as whispers of impending bankruptcy distributions swirl through the crypto community.

The FTX Token (FTT-USD) soared by more than 70% on September 29 as rumors about impending bankruptcy distributions swirled through the crypto community. Hitting $2.70 on September 29, FTT marked its highest price since March 2024.

The bullish action on September 29 came amid rumors that the FTX bankruptcy estate would soon begin reimbursing creditors and customers. These rumors helped propel FTT to its highest price since March 2024, with the token continuing to experience a meteoric rise from trading around $1.40 over the past month.

By September 30, FTT had dipped slightly to about $2.10, showing the volatility of the cryptocurrency market. The token experienced an 80% plunge when FTX collapsed in late 2022. However, it appears to be recovering now.

According to a report by CoinTelegraph, the massive sell-off following FTX's collapse was largely exacerbated when Binance sold its entire FTT holdings for “post-exit risk management,” as shared by former CEO Changpeng Zhao.

The official Chapter 11 bankruptcy plan is set to be reviewed in a court hearing on October 7. If approved, the plan will allow the FTX trustee to start paying creditors with claims under $50,000 by the end of 2024.

However, larger creditors may have to wait until 2025 to see any funds. Launched in 2019, FTT was designed to offer trading fee discounts and serve as collateral for futures positions. At its peak, the token reached nearly $80 in September 2021.

According to data from blockchain explorer Etherscan, there are about 30,600 FTX Token holders. The market cap is around $330 million. The upcoming court decision will be key to the token's future. FTT's recent surge indicates that the FTX saga is still unfolding.