Morning Minute | FTX Repayments Are Finally Coming

TylerD's Market Summary

💰 FTX Gives Timeline for Re-Org, Repayments

The darkest chapter of this past crypto cycle is about to come to a close.

And it's going to end on a good note - stimulus payments for affected customers, coming in Q1.

What Happened?

FTX, the collapsed cryptocurrency exchange, will begin repaying customers and creditors in early 2025.

The first distributions are expected within 60 days of January 3, 2025, the date when FTX’s court-approved reorganization plan takes effect.

Kraken and BitGo will facilitate the recovery process for users, who do have required actions to take.

Key Details for FTX Users

• Repayment Process:

  • FTX users must complete KYC verification, submit tax forms, and onboard to either Kraken or BitGo, the platforms facilitating the repayments.
  • Initial payouts will focus on creditors with claims $50,000 or less, representing over 90% of all claims.
  • Distributions for larger claims will follow, with details announced later.

• Repayment Amount:

  • Creditors will receive the U.S. dollar value of their crypto holdings based on prices from November 2022, when FTX filed for bankruptcy.
  • FTX’s bankruptcy plan could allocate up to $16.5 billion to creditors, with 98% of claimants expected to recover 118% of their claim values.

Why It Matters

This repayment timeline offers long-awaited relief for FTX users who have been in limbo since the exchange collapsed in 2022.

Those with smaller claims will benefit first, with most receiving their funds within two months of January 3.

Users need to act quickly to ensure they are verified and onboarded to Kraken or BitGo to avoid delays in receiving their funds.

Of course, the amount recovered will be significantly less than these users would have at current prices (they're getting paid out at the 2022 lows), but it's still better than nothing and adds up to a big total in aggregate.

Now the question becomes - where will the FTX money go?

We will find out soon...

🚚 What is happening in NFTs?

Here is the list of other notable headlines from the day in NFTs:

• Ethereum led NFT trading volume with $85M on the day; Solana was next with $5.9M and then Bitcoin with $3.3M
• ETH NFT leaders were mixed ahead of the PENGU airdrop; Punks +3% at 39.1 ETH, Pudgy +5% at 32.8, BAYC -4% at 18.7 ETH, Azuki even at 10.75
• Wonderpals (+100%) & InfiniGods (+75%) led notable top movers
• BTC NFT leaders were mixed; Bitcoin Puppets +6% at 0.159 BTC, NodeMonkes -2% at 0.136, OMB +1% at 0.147, Quantum Cats -3% at 0.20
• The Runes leaders were mostly red; DOG -6% at $900M mc, PUPS -1% at $190M, BDC -1% at $75M, GIZMO -11% at $23M
• CyberKongz received a Wells Notice from the SEC regarding their blockchain game having a token, cause for more potential concern for broader web3 gaming projects

💰 Token, Airdrop & Protocol Tracker

Here's a rundown of major token, protocol and airdrop news from the day:

🌎 Macro Crypto and Web3

A few other Crypto and Web3 headlines that caught my eye:

• Crypto majors are green again this morning; BTC +3% at $106,800, ETH +2% at $4,000, SOL +4% at $222, XRP +14% at $2.68; Bitcoin reaches highest-ever ratio to Gold
• BGB, XRP, XLM, CRO and RUNE led top alts, up 10-20%
• Memecoin majors are finally green again; DOGE +3%, SHIBA +2%, PEPE +2%, WIF +5%, BONK +6%, MOG -3%
• FTX announced its reorg will come on Jan 3, 2025, with initial repayments coming within 60 days
• Avalanche's AVAX9000 officially went live
• The UK issued a warning against Solana's RETARDIO memecoin, saying its not authorized in the country
• Ripple announced the launch of its Ripple USD (RLUSD) stablecoin going live today
• Ethena announced its USDtb stablecoin, backed largely by BlackRock's BUIDL
• Anchorage Digital secured a BitLicense from the NYDFS, allowing it to offer secure crypto trading services to institutions in 2025
• The GOD ticker on HyperLiquid sold for $975k as the daily auctions continue to increase in closing price

🚀 Memecoin Movers 

• $BENJI (+84% to $41M market cap, Base)
• $PATRIOT (+70% to $38M market cap, ETH)
• $h2w6 (+70% to $12M market cap, SOL)
• $TANK (+63% to $34M market cap, SOL)
• $OCTO (+62% to $22M market cap, SOL)

📈 NFT Floor Price Increase (ETH)

• Persona (200%, 0.18 ETH Floor)
• WonderPals (170%, 0.07 ETH Floor)
• Keepers v2 (65%, 0.08 ETH)
• Infinigods (63%, 0.16 ETH)
• Wassies (50%, 0.74 ETH)

🗓 Upcoming Mints and Events

Folks - my source for daily mints and events has shut down operations.

Given the general lack of interest in new mints on a daily basis, I'll be discontinuing this section of the newsletter, at least for now.

If I can find a good source for daily events, I will look at turning it back on.

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