Can FTX's Compensation Bring Variables to the Crypto Market?
Previously, I once thought that FTX's compensation would be delayed for years like the Mt. Gox incident. But it turns out that this process is accelerating.
FTX creditor Sunil released the latest announcement, stating that users will receive compensation funds on February 18 at 3 PM (UTC). This compensation will bring about $1.2 billion to the first batch of affected FTX users!
Alvin Kan, Chief Operating Officer of Bitget Wallet, stated that FTX's repayment is seen as a positive signal for the recovery of the crypto industry. He believes that a significant portion of the $1.2 billion repayment may be reinvested into cryptocurrencies, potentially affecting market liquidity and prices.
Firstly, most of FTX's traders are high-risk investors who primarily hold altcoins in their portfolios.
Secondly, current market data shows that most altcoins (including ETH) are severely undervalued compared to BTC.
Looking back at the market situation during the FTX collapse, BTC was priced around $16,000, SOL was around $20, and ETH was roughly $2,500.
Now, with funds flowing back into the market, many investors will reassess the current market environment and realize that ETH's value is undervalued.
In addition to ETH, there are also many altcoins whose price increases from the cycle's bottom have significantly lagged behind BTC.
Furthermore, with the increasingly friendly policy environment from the U.S. government towards cryptocurrencies, I believe that most of this funding will flow into the altcoin market, especially those tokens with real application value, rather than solely relying on speculation of memes.
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