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In a bid to bounce back to the crypto space, FTX, the previously bankrupt exchange, has unveiled an elaborate plan to restart its operations for international customers. This comprehensive reorganisation initiative categorises creditors into distinct groups. It offers a unique opportunity for select claimants to participate in the relaunch of the FTX platform with support from external investors.

The reorganisation plan classifies FTX’s creditors into specific groups, each with varying priorities for potential payouts. Among these groups are “dotcom customers,” representing beneficiaries of the FTX.com offshore exchange and customers of the U.S. exchange and the non-fungible token (NFT) exchange. 

Additionally, the plan addresses general unsecured, secured, and subordinated claims, including taxes and penalties.

FTX administrators will adhere to the “waterfall priorities” system to determine the hierarchy of claims. This approach ensures that each class of claimants receives a proportional payout from the remaining pool after the preceding class’s settlement. 

Negotiations with stakeholders will further define the specific order of payouts, providing a transparent and equitable resolution process.

The proposed plan presents an intriguing option for “dotcom customers” – former customers of FTX.com. They can join forces and create an “offshore exchange company” exclusively catering to international customers, excluding those in the United States. This remarkable initiative opens the door for active involvement in the relaunch of FTX.

In an unprecedented move, the debtors may opt to offer a non-cash consideration to the Dotcom Customer Pool rather than a cash payout. This consideration may manifest as equity securities, tokens, or other interests in the new offshore exchange company. 

By providing stakeholders the chance to hold a stake in the reinvigorated platform, FTX aims to foster long-term commitment and collaboration.

While FTX’s revival plan takes shape, the fate of the FTT token remains uncertain. Previously classified as a security by the U.S. Securities and Exchange Commission (SEC), the token’s future remains in the balance. The plan explicitly states that FTT requests will be cancelled and released after the plan’s effective date, raising questions about the token’s status going forward.

FTT Token Shows Resilience

Despite the uncertainty surrounding the FTT token, it has demonstrated remarkable resilience in challenging circumstances. Following the announcement of FTX’s plan to restart operations for international customers, the FTT token experienced a notable surge in value. The token’s price rose approximately 10%, reaching $1.47 in the immediate aftermath. While the price experienced a slight dip, it continued to exhibit positive momentum.

FTT/USD Price Chart 1 Aug 2023

image source: Tradingview.com

What should we expect?

As the cryptocurrency community eagerly awaits the outcome of FTX’s reorganisation plan and potential international expansion, all eyes are on the exchange’s efforts to overcome past challenges and carve a new path forward. 

The interplay between FTX’s restructuring and the FTT token’s performance will undoubtedly shape the narrative of the exchange’s comeback and its position in the dynamic world of cryptocurrencies.

The ambitious plan set forth by FTX for revival and international expansion has captivated the cryptocurrency space. With a transparent categorisation of claimants and an opportunity for stakeholders to actively participate in the exchange’s rebirth, FTX aims to rebuild its reputation and reclaim its position as a major player in the crypto industry. 

As events unfold and the fate of the FTT token becomes clearer, the crypto community remains hopeful about the prospects of FTX and the potential for a successful turnaround.