- After FTX’s possible reopening, FTT tokens rose 102.7%, but cryptocurrency analyst Michael Van de Poppe recommended against buying them.
- FTX is exploring reopening as one of many options, but a decision has yet to be made, and significant funding is necessary to restore operations.
- FTX’s attorneys recovered $7.3 billion in cash assets, up from $1.9 billion in January, but stock distribution is still delayed.
Michael Van de Poppe, a cryptocurrency expert, has cautioned against investing in FTT tokens, the native tokens of the bankrupt FTX exchange. He believes that the possible risks are more significant than the potential rewards. This advice follows the FTX attorneys’ indication of a potential reopening in the future.
FTT tokens jump 102.7% on news of FTX reopening
On Wednesday afternoon, FTT tokens experienced a surge of 102.7% in value as reports emerged of FTX’s reopening in Q2. The lawyers from Sullivan & Cromwell discussed several possibilities for the future of the troubled company during a court hearing, including the prospect of a reopening.
Ray has pondered reviving FTX after reviewing the present condition of FTX Japan with different partners in Japan. Meanwhile, the media has been reporting an auction to sell the exchange, drawing interest from possible bidders, including online brokerage Monex. Several updates and developments about the sale have occurred in recent months.
Michael Van de Poppe expressed scepticism on the possibility of FTX resuming business as usual. In addition, he cast doubt on the utility of FTT tokens and suggested to investors that they investigate other alternatives currently on the market.
FTX’s reopening uncertain
Andy Dietderich, the primary legal representative for FTX, stressed that while reopening the exchange is being considered, it is only one of several possibilities and still needs to be finalised. During a recent court hearing, he acknowledged the substantial capital required to resume operations. He suggested that customers may have the option to receive a stake in the exchange instead of cash from the estate.
Dietderich stated that there were as many opinions on the matter as there were professionals involved in the case, which he believed was a lot.
The attorneys for FTX have informed the court that they have collected $7.3 billion in liquid assets from the bankrupt exchange. This is a significant increase from the $1.9 billion that was announced in January. On the other hand, they said that FTX is not even close to being able to distribute stock at this point.