FTX Cryptocurrency Exchange Unveils Reopening Plan for Creditors; Tether Records $850 Million Net Profit in Second Quarter; China prepares to launch blockchain infrastructure system by 2025
FTX, the cryptocurrency exchange that recently faced bankruptcy, has revealed an ambitious plan to organize its creditors into distinct plaintiff classes. The goal is to reopen the FTX exchange with the support of third-party investors, subject to approval from a specific class of plaintiffs.
FTX’s Creditor Groups
Creditors have been divided into several groups, including “Dotcom Clients” who are creditors of the offshore exchange FTX.com. Other groups consist of customers of the US arm of the cryptocurrency exchange, customers of the NFT exchange, and general unsecured creditors, as well as secured and subordinated creditors. Notably, general creditors include Alameda Research’s creditors and trading partners, while subordinated receivables pertain to fines from taxes and penalties.
Payment Priority and Distribution
FTX’s plan involves determining priority among creditor groups based on flow priority. Each class will receive a payment proportional to the remaining pool after the previous class has been fully compensated. The specific order of payment distribution will be determined through consultations with stakeholders to ensure fairness and transparency.
Incentive for Creditors
FTX is offering creditors an attractive option to receive shares in the reopened stock market instead of cash payments. This provides flexibility for creditors to participate in the potential growth and success of the revamped FTX exchange.
Interim CEO Leading the Charge
Interim CEO John Ray III has been actively pursuing the reopening of FTX. Previous documents submitted in May included phrases such as “FTX reboot” or “FTX 2.0 reboot,” signaling the company’s determination to forge a new path and regain momentum.
Tether Records $850 Million Net Profit in Second Quarter
Tether, the leading stablecoin issuer, recently released its second-quarter report, as reported by CoinMarketCap. The company declared an impressive net profit of $850 million during the second quarter.
While Tether’s profit figures are substantial, it is worth noting that the current profit falls short by $1.5 billion compared to the previous period.
Tether’s Q2 Success
The second-quarter profit catapulted Tether’s excess reserves to an estimated $3.3 billion. “It is important to emphasize that the excess reserves represent the company’s retained profits and are not distributed to shareholders. Tether has chosen to maintain reserves above 100 percent to back all outstanding tokens,” said Tether in a statement on July 31.
The report indicates that Tether’s consolidated total assets stood at approximately $86.5 billion as of June 30, with consolidated total liabilities calculated at $83 billion. This translates to an all-time high of over $3 billion in excess reserves. Moreover, the excess reserves surpassed Tether’s first-quarter figures of $2.44 billion.
It is worth highlighting that USDT remains the largest stablecoin in the market, boasting a token supply of 83.8.
Tether’s impressive performance in the second quarter underscores its continued prominence in the stablecoin category. As the market evolves, Tether’s financial strength and excess reserves position the company well to back its outstanding tokens, providing stability and reliability to the broader cryptocurrency ecosystem
China prepares to launch blockchain infrastructure system by 2025
According to an update on the official website of the Chinese Government, an implementation plan was published on July 31 in the country’s Shanghai city to promote the development of the urban blockchain digital infrastructure system from 2023 to 2025.
In the update, it is stated that the plans are formulated to serve the strategic goal of Shanghia urban digital transformation and to strengthen the application of blockchain in the economy, public services and urban governance.
Breakthroughs have been made in blockchain core technology and standard system formation, leading to an industrial ecology with strong innovation momentum and nurturing a group of leading and innovative companies with industry influence.
According to the announcement, it will also help coordinate blockchain network resources in the Yangtze River Delta region of China, and an international blockchain exchange center will be created.
As it is known, China has recently been preparing various cities across the country to adopt and implement new technologies.
Last May, the city of Nanjing, the capital of eastern China’s Jiangsu province, introduced the China Metaverse Technology and Application Innovation Platform, with the aim of advancing the country’s metaverse research and development efforts nationwide.
At the same time, the Chinese city of Zhengzhou also announced a series of proposals to support the activities of metaverse companies in the region.
In addition to the developments in the blockchain and metaverse field, China is also resolutely making progress in the development and dissemination of the digital yuan, which is the CBDC, in various cities of the country.
Also in early July, the Chinese city of Jinan began promoting the adoption of the digital yuan by launching payments on all bus routes.