The collapse of FTX in 2022 marked a dramatic shift from its former glory to a complex journey of debt repayment and liquidation. Two years later, FTX's compensation plan is becoming clearer, but it brings massive selling pressure to certain cryptocurrencies.
This article explores FTX's repayment progress, affected tokens, and how its once-groundbreaking products continue to shape the crypto industry's future.
FTX's Repayment Plan: Key Updates
In May 2024, the Associated Press reported that FTX's court filings revealed a clear repayment framework. The exchange owed creditors approximately $11.2 billion**, with estimated distributable funds ranging between **$14.5–$16.3 billion.
Key details:
- Full repayment + 9% interest for most creditors if funds permit.
- Claims ≤ $50K (98% of FTX clients) will receive ~118% reimbursement.
- Payments are dollar-denominated based on crypto prices at FTX's bankruptcy filing (Nov 2022).
👉 Track real-time FTX wallet movements
Pros and Cons of Dollar-Based Repayment
- Downside: Creditors miss out on crypto's bull market gains (e.g., BTC was $16,080 in 2022 vs. ~$60K today).
- Upside: Without the crypto rally, FTX might lack sufficient funds for full repayment—getting original sums back is still a win.
By August 2024, FTX and the CFTC agreed to a **$12.7 billion settlement**, ensuring government lawsuits wouldn’t reduce client payouts. FTX also sold $1B in Anthropic AI shares and paid $865M in tax claims.
Cryptocurrencies Facing Heavy Selling Pressure
FTX's Arkham-tracked wallets hold $1.475B in assets, led by:
| Token | FTX Holdings (USD) | FDV/Market Cap | 24H Volume |
|---------|--------------------|----------------|-------------|
| FTT | $680M | $870M | $18M |
| OXY | $356M | $365M | $3K |
| MAPS| $147M | $185M | $130K |
| MEDIA| $131M | $14M | N/A |
High-Risk Tokens
- FTT: FTX holds 78% of its FDV—liquidation could crash prices.
- OXY: Illiquid (just $3K daily volume) with FTX owning 97% of FDV.
- MAPS/MEDIA: FTX’s holdings exceed their entire market caps.
Moderate-Risk Tokens
- FIDA ($55M held), **BOBA** ($17M), and SRM ($2.7M) face pressure but have better liquidity.
Low-Impact Tokens
- SOL, RAY, JUP, RENDER: Large markets easily absorb FTX’s holdings (e.g., FTX’s $3M SOL vs. $40B daily volume).
👉 How to hedge against token dumps
FTX’s Legacy: Innovative Products
1. Leveraged Tokens
FTX pioneered user-friendly leveraged tokens (e.g., 3x BTC/ETH), allowing traders to gain exposure without managing margin positions. Now adopted by exchanges like KuCoin, these products remain popular.
2. Tokenized Stocks
FTX offered tokenized equities (e.g., COIN, BABA), enabling global access to U.S. markets. While Backed serves non-U.S. users today, Coinbase is exploring tokenized COIN shares for Base L2.
FAQs
Q: Will FTX’s FTT sales cause a price collapse?
A: Likely—FTX holds 6x FTT’s daily trading volume. Expect volatility unless OTC deals occur.
Q: How are small creditors (<$50K) affected?
A: They’ll receive ~118% repayment, prioritized over larger claims.
Q: Did FTX’s liquidation hurt SOL’s price?
A: No. SOL’s $40B daily volume dwarfs FTX’s $3M holdings.
Q: Are tokenized stocks returning?
A: Coinbase may launch them on Base, but U.S. regulatory hurdles remain.
Final Notes
FTX’s repayment marks a critical phase for illiquid tokens. Traders should monitor FTT, OXY, and MAPS closely, while major assets like SOL remain stable. The exchange’s product innovations, however, continue influencing DeFi and CeFi landscapes.