FTX has commenced the distribution of $5 billion in stablecoins to creditors, marking the first major payout since its bankruptcy three years ago. The distribution, calculated based on late 2022 prices, has sparked concerns about potential market volatility as recipients may choose to reinvest or liquidate their holdings. Ethereum holders are among those receiving relatively favorable returns, while others face mixed outcomes.
The second phase of repayments, facilitated by BitGo and Kraken, is anticipated to influence the market as it enters the fourth quarter, traditionally a strong period for cryptocurrencies. While analysts suggest that the influx of liquidity could bolster Bitcoin and altcoin prices, there remains a risk of a sell-off due to the price differences between 2022 and the current market.
FTX Begins $5 Billion Stablecoin Payout Amid Volatility Concerns
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