Recently, the heat of FTX compensation has been getting higher and higher? Many people only know the general situation through fragmented news on the Internet, and have no specific understanding of its details and the impact on the crypto market and players. After a simple analysis, different opinions can be exchanged in the comment area:

What is FTX's bankruptcy plan?

FTX will first use its recovered assets to compensate its customers, and then pay potential competitive claims from government regulators.

What does the approval of the plan mean?

With the formal approval of the plan, FTX will compensate 98% of its customers within 60 days after the bankruptcy plan takes effect.

When will the bankruptcy plan take effect?

Everyone must remember that the liveliness of the bankruptcy plan does not mean that the plan will take effect, and the specific effective date has not yet been determined.

However, there is a lot of calls on the Internet for the time point of October 31. If the time is right, it means that 98% of FTX users will start to receive compensation at the end of the year.

Will the compensation be paid in one lump sum this time?

FTX expects to pay about $1.1 billion to 98% of users (i.e. users with claims less than $50,000) within the year, and the remaining amount is expected to be paid in the first and second quarters of 2025.

I know that this news will inevitably pour cold water on those brothers who hope that this hot news can bring a wave of blowout growth to the market, but facts are facts, so we should recognize the facts and make good operational judgments.

There is also a point that everyone is most concerned about: Will the compensation funds flow back to the market?

And can this $16.5 billion flow back to inject more liquidity into the market, thereby driving the market up!

However, considering that FTX-related bonds have been circulating in the market for a long time, a large number of original creditors are in need of cashing out as soon as possible, and have traded their bonds to institutions specializing in bankruptcy claims, so it is difficult for some funds to flow back.

However, some funds cannot flow back to the market, and the remaining assets are still a large number, which is still a good thing for the market!

However, I still remind everyone here that many good things have landed and bad things have been remembered by both spot players and contract players!