FTX Stages Comeback in 2023: Will It Be a Success?

FTX is considering a comeback before 2023 ends.
The company is exploring various options, including an outright sale, a strategic partnership, or a standalone revival.
FTX has recovered $7 billion in assets and reached preliminary settlements with creditors.

Cryptocurrency exchange FTX is in talks with potential buyers to stage a comeback before 2023 ends, as per a recent Bloomberg report. This situation is complicated by the ongoing legal troubles of its former CEO, Sam Bankman-Fried.

We’ve broken down all the details for bite-sized pieces for you. Read on!

Exploring Revival Plans

FTX Trading Ltd., once a major player in the world of cryptocurrency exchanges, is reviewing offers from three potential buyers. They plan to make a decision by mid-December. Kevin M. Cofsky, an investment banker at Perella Weinberg Partners, made these disclosures during a court hearing in Delaware.

Bloomberg: FTX is in talks with three bidders to restart FTX and will make a decision by mid-December. Possible options include selling the entire exchange, including its list of 9 million customers, or bringing in a partner to help restart the exchange, while FTX is also…
— Wu Blockchain (@WuBlockchain) October 25, 2023

The options under consideration are diverse, including the possibility of an outright sale of the exchange. Such a move would entail transferring ownership, including a valuable customer base of over nine million users. Another option is to seek a strategic partnership, potentially involving a joint effort to relaunch the trading platform. Furthermore, FTX considers the ambitious prospect of revitalizing its trading operations independently.

Notably, Cofsky explained, “We are engaging with multiple parties every day,” yet refrained from divulging the identities of the potential bidders.

Road to Recovery!

FTX has been raising funds to pay off creditors after declaring bankruptcy the previous year. Court documents show that the company’s administrators have recovered around $7 billion in assets, including a substantial $3.4 billion in cryptocurrencies.

In the current process, FTX and its main creditor groups have reached preliminary settlements for some of the most contentious disputes. These developments pave the way for a comprehensive payout plan in December, but exact customer reimbursement percentages are still uncertain, depending on the outcome of a sale or relaunch.

FTT Price Outlook

FTX’s price direction depends on maintaining levels above $1.214. If they stay above this mark, an upward trend continues. Breaking the $1.278 resistance could lead to a bullish rally towards $1.340. Conversely, if bears take control and a trend reversal occurs, the FTT token’s price may drop. Failing to stay above $1.214 could test support at $1.150. It’s worth noting that Sam Bankman-Fried’s trial outcome may also influence FTT’s performance.

In summary, FTX is actively exploring revival options while managing its legal issues. The decisions in the coming months will be crucial for the future of this once-prominent cryptocurrency exchange.