Analysts cautious about potential market benefits of FTX creditors' compensation

Although FTX's bankruptcy reorganization plan has been approved by the court, analysts are cautious about the potential market benefits it may bring. Presto Labs' latest report pointed out that there are still doubts about whether the $16 billion in cash expected to be paid to FTX creditors will flow back into the cryptocurrency market. Presto Labs said it is too early to assume that creditors will put this cash directly into the market, which requires an analysis of the composition of claimants. In addition, repayment will begin within 60 days of the "effective" date of the plan, and the date has not yet been determined, which means that the potential market impact is not imminent. Earlier news, the Delaware Bankruptcy Court approved FTX's reorganization plan on Monday. Under the plan, 98% of FTX creditors will receive approximately 119% of the allowed claim amount within 60 days of the effective date. FTX expects the total value of distributable property to be between $14.7 billion and $16.5 billion. (decrypt)