FTX Japan will restart the withdrawal service of fiat assets and cryptocurrencies from noon on February 21st local time.
The announcement followed up on a promise the exchange made in December that domestic assets are largely protected by Japanese law.
“Due to the high volume of requests from customers, the withdrawal process may take some time to complete. We will announce the resumption of other FTX Japan services as soon as possible.”
The Japanese exchange closed on Nov. 8, days after the entire FTX empire filed for bankruptcy in the United States.
Following the news, the price of FTX’s native token, FTT, surged nearly 26% in just 2 hours yesterday, hitting highs around $2 before retracing to current levels.
Source: TradingView
FTX bankruptcy claims sold for 20 cents on private over-the-counter market
Distressed wealth funds can access FTX bankruptcy claims for as much as 20 cents per dollar on the private over-the-counter market.
FTX filed for bankruptcy in November after its sister company Alameda Research stumbled out of leveraged long positions during the bear market. Sam Bankman Fried’s collapsed exchange now owes $3.1 billion to its 50 largest creditors.
There is the public bankruptcy market, they value FTX assets at about $0.16 per dollar, and the total amount of individual claims sold on the XClaim bankruptcy market is $27 million.
Private over-the-counter markets are showing similar prices, with asset funds struggling to buy at 15 to 20 cents per dollar, said an anonymous FTX creditor.
“They buy a house expecting five years to receive their money. If the fund ends up earning 25% over five years, it’s not going to be a good deal because it’s only going to be around 5% annualized. I think a lot of these Firms are forecasting a dollar recovery around 50 cents.”
Transactions are mostly private, as not all claims are replaceable, and the “quality” of the claim is also factored into the sale value.
“Since the FTX website is currently down, it is difficult for people to prove their assets on the exchange. There may also be a recovery period for those who have been bankrupted due to withdrawals, so the quality of the claim is important.”
Emerging-Economy Retailers Hardest Hit by Terra, FTX Collapses
Most crypto app users around the world have lost money on their Bitcoin holdings following the collapse of the Terra ecosystem and FTX exchange last year, but investors outside major economies have been hit the hardest.
Losing money in venture capital is not a new phenomenon: last year, US investors lost $9 trillion just because of falling stock prices. The report stated that more than $450 billion disappeared from the cryptocurrency market after Terra’s collapse in May 2022, and another $200 billion disappeared after FTX’s bankruptcy in November.
BIS, an organization owned by the central bank, analyzed data from cryptocurrency trading apps in 95 countries along with collected online data on the daily distribution of bitcoin holdings. From Into The Block. The data shows that between August 2015 and December 2022, nearly three-quarters of users downloaded applications for crypto platforms when the price of bitcoin exceeded $20,000.
“By December 2022, the average investor will lose $431, which is almost half of the $900 they have invested since they downloaded the app. Notably, in some emerging markets such as Brazil, India, Pakistan, Thailand and Turkey Economies, this ratio is even higher. If investors continue to invest at a monthly frequency, more than 4/5 users will lose money.”
The report’s authors claimed that users invested in bitcoin “on the same day they downloaded the app” and that “every new user bought $100 in bitcoin during the first month of app download and every subsequent month.” ’ ” It’s not clear to what extent those assumptions reflect reality — in particular, whether downloading an app guarantees a cryptocurrency purchase.
The report also said that larger investors may benefit at the expense of smaller investors. “Price patterns suggest that larger investors can sell their assets to smaller investors before prices collapse.”
- FTX Japan Announces Plans to Continue Resuming Crypto Withdrawals for Clients
- FTX Warns Against FUD Token Backed by Justin Sun
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