- FTX’s $12 billion stablecoin repayment is expected to significantly impact crypto liquidity.
- Traders speculate that FTT may rise but remain cautious about long-term effects.
- Broader market dynamics could shift, potentially sparking interest in altcoins.
The cryptocurrency community is closely observing the actions of FTX, as it initiated its $16 billion repayment on January 3, 2025. The distribution includes its $12 billion in stablecoins, and will occur on platforms like Kraken and BitGo. With these changes, the market is divided on the pros and cons that will impact FTT, the native token of the FTX exchange, signalling a major turning point in the market.
Critical Repayment Plan Detail
At one point, FTX was able to control the cryptocurrency market but now, after the restructuring of its finances, its main priority is to pay its debts. The $16 billion payout scheme is aimed to discharge the amounts owed to other creditors and investors according to the company. Further, the massive repayment is perhaps unprecedented in the crypto space, and everyone views it as a significant step towards rebuilding the company.
The $12 billion stablecoin portion of the repayment is particularly noteworthy. Stablecoins are applied for trading and providing market liquidity in the cryptocurrency market. This means that as FTX puts out this volume, it could impact the trading volume and the market as a whole.
Possible Effects on FTT Token
Market participants are speculating about the potential impact of these repayments on the FTT token’s price. Trading at $3.78 during press time, FTT has seen modest gains ahead of the payouts, with a 0.6% increase over the last 24 hours. Further, traders are eyeing a breakout to $5 on FTT, While the future of the token remains uncertain, the resistance levels and support levels are at $4.00 and $3.75 respectively.
A few traders speculated that the desire to attain access to higher liquidity might result in the reinvestment of FTT, which would increase its value, but others reminded that the activity related to repayment might not necessarily be beneficial for the token in the long run and escalating the current liquidity could help with trading operations and reignite interest in altcoins.
Still, some analysts believe that it might have created the backdrop for the next altseason – a period during which several altcoins record massive and unprecedented progress.
Meanwhile, traders were cautioned to be on guard for fluctuations regardless of FTX’s payout type. Although this development is a turning point for FTX and the cryptocurrency market, time will witness if the situation creates long-term growth or temporary changes.
