TechFlow news: Digital asset brokerage firm K33 reported that FTX's repayment could have a bullish impact on the market.
K33 noted that unlike Gemini and Mt. Gox, which are repaying in-kind, FTX is using cash repayments, which may neutralize market selling pressure. FTX's debt totals $3.1 billion, but it has already sold some assets, including $7.5 billion worth of Solana and $1 billion in Grayscale shares.
Although cash repayment may mitigate market pressure, the timing of repayments could still affect the market. Gemini is expected to repay $1.7 billion by early June, while Mt. Gox's $8.9 billion repayment will occur before October 2024.
FTX plans to repay its debts through a restructuring proposal totaling up to $16.3 billion. Creditors with claims below $50,000 will receive 118% compensation.
