The lessons learned from FTX will likely be key talking points at this year’s World Economic Forum (WEF) meeting in Davos, Switzerland. The exchange’s Debtors have finalized plans to repay creditors after itcollapsed in 2022.
Even as FTX’s former CEO Sam Bankman-Fried awaits his sentencing trial after being convicted on eight counts of fraud, the elite of the financial world gathers in Davos, Switzerland. The conference’s theme is “rebuilding trust,” which is what the crypto industry is arguably trying to do.
FTT Surges After Bitcoin ETF Approvals
Around 75% of Americans have little to no trust in crypto. The collapse of FTX, piecemeal financial reporting in media, and exclusive jargon have alienated the American public. High-profile crypto court proceedings, including the trial of Bankman-Fried and the charging of former BINANCE CEO Changpeng Zhao, were among the many events that shattered trust in the industry
The failure of the ecosystem started off the crypto winter in earnest. Prices began rising after several investment firms filed papers to launch a Bitcoin exchange-traded fund. The US Securities and Exchange Commission approved 11 such funds last week.
The recent ETF approvals saw the native token of FTX, FTT, peak at $3.33 in the past seven days. , also an FTX-related altcoin, surged to over $100. Both tokens suffered significantly after the FTX collapse.
FTX filed for bankruptcy in 2022 after a tweet revealed the dependence of its sister quant trading firm, Alameda Research, on the FTT token. The bankruptcy estate received approval from the courts to sell the exchange’s crypto assets in multi-million dollar tranches at the end of last year. FTX also has significant real estate to dispose of, including a luxury property worth $256M in the Bahamas.
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