FTX claims prices soar, but experts warn of an unsustainable recovery

The recent surge in claims by FTX creditors is unsustainable, according to Vladimir Jelisavcic, founder and manager of Cherokee Acquisition – a cryptocurrency bankruptcy brokerage.

In post dated December 20 on X (formerly Twitter), Jelisavcic stated “the price increase for FTX claims will slow down soon” because “this price increase cannot be sustained much longer”.

Jelisavcic’s comments stemmed from the bankrupt exchange’s recent upward trend in claim values ​​over the past weeks. According to data from Claims Market, FTX claims have increased more than 25% since November to a maximum of 69% as of December 15.

FTX restructuring plan “less impressive”

Interestingly, the increase in claim value is taking place against the backdrop of FTX’s recently announced reorganization plan that is likely to result in multi-million dollar losses for the exchange’s creditors do not live.

Sunil Kavuri, one of the bankrupt company’s most prominent creditors, said:

“The reorganization plan goes against FTX’s Terms of Service, which state ownership of digital assets belongs to the customer, not the exchange.”

Claims Market also further described the plan as “ineffective,” adding that the disclosure statement remains main point unresolved.

Why have FTX claims increased so sharply?

The increase in FTX claim prices can be linked to several key factors. Chief among them is FTX’s strategic investment in Anthropic, an artificial intelligence startup that receives support from large technology companies such as Google and Amazon.

FTX’s corporate stake could grow to as much as $4.5 billion if its valuation rises to between $20 billion and $30 billion.

Earlier today, it was reported that the company is discussing raising $750 million in a funding round led by Menlo Ventures at a valuation between $15 billion and $18 billion.

Additionally, FTX’s significant investment in Solana’s SOL, a cryptocurrency that has grown an impressive 773% year-to-date to around $86, also played a role in amplifying the value. of compensation claims.

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