On September 29, 2024, FTT reached multi-month highs with an increase of over 70% and hit $2.70 for the first time since March 2024, according to CoinGecko data.

This sudden rise is attributed to rumors circulating on social media; Because some sources have claimed that the repayment funds during the FTX bankruptcy process will be distributed to creditors and users as of September 30.

While FTT was trading at $1.4 on September 29, it suddenly experienced an increase of over 70%. However, after this rapid rise, the price started to decline again and fell to approximately $2.10 as of September 30.

This represents a 30% gain in the last 24 hours. This sudden rise in FTT suggests investors are taking action based on speculation about repayment distributions to creditors. However, the accuracy of these claims has not yet been confirmed by official sources.

According to the official Chapter 11 filing regarding the FTX bankruptcy process, the repayment plan has not yet been approved. A hearing to approve the bankruptcy plan will be held on October 7, 2024. If the plan is accepted by the court, FTX’s trustee plans to begin distributions to creditors by the end of 2024.

In this process, payments of creditors, especially those with receivables less than $50,000, will be made earlier, while creditors with larger demands may not receive their payments until the first or second quarter of 2025.

This process is seen as part of a long and complex bankruptcy process that begins after the collapse of FTX in 2022. FTX entered a liquidity crisis in November 2022 and filed for bankruptcy.

At that time, the exchange’s CEO, Sam Bankman-Fried, resigned from the management and the exchange ceased its operations. This bankruptcy had a huge shock effect on the cryptocurrency market and many investors suffered huge losses. The FTT token was also seriously affected by this process and lost value.

FTT’s current price movements reflect positive expectations, despite uncertainty about how investors will be affected by this refund process. Rumors circulating especially on social media have caused large fluctuations in FTT’s short-term price movements.

However, official authorities state that the plan has not been approved yet and no definitive date has been given as to when the repayment process will begin.

In this process, investors are advised to be careful and avoid making decisions based on speculation. If the bankruptcy plan is approved by the court, a clearer picture will emerge regarding how distributions will be made among creditors and the timing of these distributions.

In summary, the recent sudden rise of FTX Token (FTT) is due to investors having positive expectations about the upcoming bankruptcy distributions. However, the sustainability of this rise may vary depending on how the bankruptcy process will conclude and when repayment plans will be approved.