Ride the initial spring breeze? The "bankruptcy target" has risen by over 100%

Authors: Sharon, Joyce, BlockBeats

Table of Contents: · FTT's monthly increase reaches 169.6% due to FTX restart news · Celsius bankruptcy progress update, CEL's monthly increase exceeds 90% · SEC urges judgment process, LUNA's monthly increase exceeds 50% · VGX price rises slightly due to Voyager's settlement with regulators · Related tokens to "bankrupt subjects" OX's monthly increase exceeds 70%

In this round of cryptocurrency rally, "bankrupt subjects" are also showing signs of recovery, with related tokens such as FTT, CEL, and LUNA experiencing 24-hour increases of 83.86%, 4.5%, and 13.7% respectively; looking at a 30-day range, FTT, CEL, LUNA, and VGX have increases of 169.6%, 92.1%, 56.6%, and 24.4% respectively.

FTT's monthly increase reaches 169.6% due to FTX restart news

On November 9, Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), stated that if Tom Farley, CEO of Block.one's crypto trading platform Bullish, or anyone else wants to restart FTX, "I would say to act within the legal framework." If the new leadership team operates with a clear understanding of the law, a restart of FTX is possible.

Subsequently, the FTX token FTT surged to $2.36 before retreating, with a 24-hour increase of 83.86% and a staggering 30-day increase of 169.6%. As of the time of publication, FTT is priced at $2.82.

It is noteworthy that FTT has shown multiple upward trends over the past year. On December 9, 2022, CNBC crypto commentator Ran Neuner proposed restarting FTX and reissuing new FTT on his social media platform. SBF responded that this would be a productive way for all parties to explore. He hopes the existing team will do so. This post subsequently triggered an increase of over 20% in FTT.

In April 2023, during a court hearing on the FTX bankruptcy case, it was stated that FTX is considering reopening its trading platform at some point in the future. Following this news, FTT briefly broke through $2.7, with a 24-hour increase of 97.5%.

On June 25, Coingape reported on a list of entities interested in the FTX 2.0 restart published by FTX's consulting firm Alvarez & Marsal; on the 28th, FTX CEO John J. Ray III stated that "we have begun soliciting interested parties to restart the FTX.com trading platform." By June 29, FTT's 24-hour increase reached 16.79%; on June 30, FTT briefly touched $2.5, with a 24-hour increase of 38.35%.

On August 1, the FTX 2.0 Coalition officially stated that FTX had submitted a reorganization plan, with key information including that all non-customer claims (such as those from the IRS) would be subordinate, FTT claims would amount to zero, and offshore exchanges would restart to fill customer gaps. Subsequently, FTT briefly rose over 10%.

On October 25, FTT saw a brief increase of 23.8%, driven by the news that SBF's lawyer confirmed SBF would testify in court on October 26.

In the past week, FTT has seen an increase of over 135.4%. Many investors hope to capitalize on FTT's next rise. Community investor @BoringBack pointed out that based on the previously successful creditor compensation plan reached by the FTX debtors' team and UCC, AHC, the reorganization plan is likely to be successfully mediated and the formal version of the FTX reorganization plan will be released no later than the end of December.

Celsius bankruptcy progress update, CEL's monthly increase exceeds 90%

Once one of the world's largest crypto lending platforms, Celsius announced its bankruptcy in 2022. However, today, after the U.S. bankruptcy court announced approval of Celsius's plan to transform into a Bitcoin mining company owned by creditors, even without SEC approval, its token CEL surged, with a 24-hour increase of 4.5% and a monthly increase of 92.1%.

Looking at CEL's price over the past six months, it reached its peak on October 28. At that time, SBF mentioned during his testimony that Celsius had hoped SBF would provide emergency funding, but SBF declined this request.

Regarding Celsius itself and its token CEL, community member Stephen analyzed that Celsius, with 1.7 million users, "will be very attractive to capital" in the WEB3 space: "A market downturn may lead to a drop of 10-20%, but once there is a phenomenal positive news (such as reassuring acquisitions and strong teams coming in), there could be a significant increase."

Related reading: 《Celsius Bankruptcy Details Revealed: LUNA Zeroed, Three Arrows Loans Liquidated, High-Price Acquisition of Mining Machines…》 As of July 2022, Celsius had 1.7 million registered users and 300,000 active users with balances over $100, paying about 5% in investment rewards. Celsius had 23,000 retail borrowers with $411 million in unpaid loans and $765 million in collateral; the company had 47 institutional borrowers with $93 million in unpaid loans and $98.5 million in collateral.

SEC urges judgment process, LUNA's monthly increase exceeds 50%

Like CEL, LUNA, which once became popular in South Korea and even worldwide, has also seen significant increases recently. According to CoinGecko data, LUNA's 24-hour increase reached 13.7%, with a 30-day increase of 56.6%. As of the time of publication, LUNA is priced at $0.594, the highest in nearly three months. Just on November 3, the SEC requested the court for a summary judgment against Do Kwon (founder of LUNA issuer Terra) and Terraform.

According to BlockBeats observations, on September 28 of this year, LUNA's price also saw a significant increase, peaking at $0.572. At that time, the issuer of LUNA, the Terra Classic (LUNC) community voted to decide to stop all minting of Terra Classic USD (formerly known as UST), and the proposal was passed with 59% support, aimed at protecting "the community and external investors who are destroying USTC to help restore the peg."

Related reading: 《The Disappeared Luna Founder for 8 Months is Making a Comeback》 "Legal experts say that if Kwon is extradited, he could file a legal appeal in Serbia, which might allow him to avoid returning home for years. At least two employees of Terraform Labs live in Serbia. They have not responded to DL News's request for comment. This may give Kwon enough time to participate in the next bull market and another opportunity to attract novice investors who are unaware of the previous failures in the industry."

VGX price rises slightly due to Voyager's settlement with regulators

Compared to the previous "bankrupt subjects," VGX, which has a similar experience, has not performed as well. Although its price decreased by 2.8% in 24 hours, its monthly increase reached 24.4%. The issuer behind VGX, crypto lending institution Voyager Digital, recently made a statement on October 13. At that time, the U.S. Federal Trade Commission (FTC) announced that it had reached a settlement with Voyager Digital, permanently prohibiting it from handling consumer assets and suing its former CEO Stephen Ehrlich for falsely claiming that customer accounts were insured by the federal government.

According to BlockBeats observations, over the past six months, VGX had risen to a peak price of $0.192, at which point Voyager had reopened withdrawals and provided customers with a month of withdrawal services. In the month following June 23, over $229 million had flowed out of the Voyager platform. By August, Voyager had also transferred 1,500 ETH and 25 billion SHIB to Coinbase.

Related tokens to "bankrupt subjects" OX's monthly increase exceeds 70%

In addition to projects that have gone bankrupt, the market is also paying attention to other related tokens. The bankrupt Three Arrows Capital's founder Zhu Su is also the founder of OPNX, "the first trading platform for claims."

Since August, the price of OX on the OPNX platform has been on a downward trend, but it has seen a significant increase in the past month, with a 7-day increase of 40.6% and a monthly increase of 77.8%.

Related reading: 《OPNX's Trading Volume of Millions Questioned, Bond Trading Becomes a Gimmick, Contracts Become the Main Force》 "Since the launch of the OPNX platform, its trading volume has attracted user attention. According to FLEX Statistics data, since June 23, the OPNX platform's 24-hour trading volume has exceeded $50 million, peaking at $57 million, with the current 24-hour trading volume at $47.72 million."

Conclusion

Blogger @BoringBack, who focuses on "bankrupt coins," has stated that the prices of "bankrupt coins" often surge due to specific event news. The concept of "bankrupt coins" is closely related to project restructuring, making it seem to have a strong correlation with news, appearing to offer clear returns; however, at the same time, the processes involved in restructuring are complex and cumbersome, and sudden news can lead to significant fluctuations, thus posing high risks.

BlockBeats also reminds investors that when considering "bankrupt coins" as investment targets, the impact of news and sentiment on price fluctuations is significant, and investors should be cautious in their entry decisions.