Morning Minute | FTX Judge Approves Cash Repayments Plan

TylerD's Market Summary

📈 FTX Money Is Coming

At long last, we finally have resolution to the FTX debacle.

And now up to $7B may be returned to those impacted.

What Happened

In a landmark decision on Monday, a Delaware judge has approved FTX's reorganization plan.

This ensures substantial cash repayments for most creditors while rejecting requests for crypto distributions.

Judge John T. Dorsey of the Delaware Bankruptcy Court approved FTX’s second amended bankruptcy plan on Monday, with overwhelming support from creditors.

The plan will repay most creditors in cash, with an average of 118% of the value of their assets held in 2022.

Some creditors could receive up to 140%.

Objections from creditors who preferred in-kind crypto repayments and disagreed with the valuation of FTX’s FTT token were overruled, as the estate argued it lacked the assets to fulfill such requests.

Key Figures:

• 94% of creditors supported the reorganization plan, covering $6.83 billion in claims
• 98% of creditors will receive at least 118% of their claim value in cash, with some receiving up to 140%
• FTX’s estate valued FTT tokens at zero, arguing that the token has no utility without a functioning exchange

What Are They Saying:

• FTX attorney Brian Glueckstein stated, “Experts explained that FTT has no fundamental value. There's no utility outside of an operating FTX.com exchange.”
• Regarding asset recovery and repayment in crypto, he added, “There is no and there will be no restarted FTX.com exchange.”
• Addressing the possibility of in-kind returns, Glueckstein argued it would be impossible because, “the estate simply did not have those assets.”

Why It Matters:

This resolution offers significant financial recovery for FTX creditors.

While they are getting paid out at the value of their crypto holdings at the time of collapse, which unfortunately are several multiples lower for some tokens like Solana, it's still much better than nothing.

The billion dollar question now becomes - what will the creditors do with the money?

Will they throw it back into the crypto market?

Or simply walk away?

It seems we will find out soon...

🚚 What else is happening in NFTs?

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

• Ethereum led NFT trading volume with $3.5M on the day; Bitcoin was next with $2.2M, and then Solana with $1.6M
• ETH NFT leaders were mostly red down 1-3%; Punks even at 27.8 ETH, Pudgy -3% at 9.73, BAYC -1% at 10.85, Azuki -3% at 5.18, Milady even at 3.17
• Deep Black (+28%) and Sproto Gremlins (+19%) were notable top movers
• BTC NFT leaders were also red down 4-10%; NodeMonkes -4% at 0.169 BTC, Puppets -9% at 0.129 BTC, OMB -5% at 0.17, Quantum Cats even at 0.259; Oordzaar outperformed +39% to 0.014
• The Runes leaders were mixed; DOG -2% at $386M mc, PUPS -5% at $143M, RSIC +2% at $77M mc
• Solana NFTs were mostly red; Mad Lads -1% at 47 SOL, SMB Gen 2 -1% at 21.1, DeGods even at 14.8 SOL
• A Pudgy Penguin Arcade Game "Polar Challenge" was spotted at a Chuck-e-Cheese in Dallas
• ACK announced his newest collection "Piano Blossoms" which includes 6 1/1s and an edition of 30, with auctions taking place for the 1/1s on Oct 17-20 and the edition ranked auction to begin on Oct 20

💰 Token, Airdrop & Protocol Tracker

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

🌎 Around Crypto and Web3

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

• Crypto majors are red down 1-2% after a rally yesterday;  BTC -1 at $62,500; ETH -1% at $2,430, SOL -2% at $144; APTOS and FANTOM are top alt movers up 5%
• Memecoin majors are also red; DOGE -3%, SHIBA -2%, PEPE -6%, WIF -5%, BONK -6%, POPCAT -13%, and MOG -2%; NEIRO flipped MOG, now at $730M mc
• A new Ethereum upgrade proposal EIP-7781 would boost throughput by 50%
• Trump is eyeing Robinhood's Chief Legal Officer Dan Galagher for head of the SEC is he wins the presidency
• The U.S. Supreme Court deniedhttps://decrypt.co/284980/supreme-court-4-4-billion-silk-road-bitcoin a hearing for a case concerning the ownership of the Silk Road Bitcoin (69,730 BTC worth $4.4B), seemingly opening up the U.S. to sell it
• BlackRock claimed that crypto is being adopted faster than the internet and mobile phones from a pacing perspective 
• VanEck's Head of Digital Assets shared their $MEMECOIN index which holds 11% WIF, behind Shiba (33%), Doge (27%) and PEPE (17%)
• The National Bank of Bahrain ($15B in AUM) created its first Bitcoin fund
• The Polymarket bet on Who Is Satoshi? saw wild action yesterday with Other/Multiple now the resounding favorite at 65% with over $16M bet

🚀 Memecoin Movers 

• $MOODENG (+93% to $79M market cap, ETH)
• $CSI888 (+82% to $12M market cap, ETH)
• $WOJAK (+40% to $72M market cap, ETH)
• $SPX (+32% to $484M market cap, ETH)
• $NEIRO (+20% to $735M market cap, ETH)

📈 NFT Floor Price Increase (ETH)

• Goblinarinos (150%, 0.17 ETH)
• Yayo (43%, 0.12 ETH)
• DeepBlack (28%, 0.64 ETH)
• Sproto Gremlins (19%, 1.79 ETH Floor)
• rektguy (12%, 0.48 ETH)

🗓 Upcoming Mints and Events

Today is a busier day of mints, mostly focused in the art sector.

There are drops on fxhash and Verse, with MLow also kicking off a collab with 13 artists. Then Beeple will sell prints tied to The Tree of Knowledge with Avant Arte.

See the full list and dive in for more details with Swizzy's daily mint monitor. 

• Taproot Puppets (10:00 a.m. ET)
• Jovanic x Galerie x fxhash - The Anatomy of Frature (11:00 a.m. ET)
• Ed Fornieless x Verse - 8 Ball Sages (11:00 a.m. ET)
• Chimpers - Dojo Legends (12:00 p.m. ET)
• Beeple x Avant Arte - The Tree of Knowledge (1:00 p.m. ET)

Enjoy this write-up and/or want to sponsor the Morning Minute? Follow along with me on Twitter @tyler_did_it or reach out via email to tyler.d.warner@gmail.com.