OLALEKAN FAKOYEJO FROM RIPPLES NIGERIA
Bitcoin (BTC) appreciated in value this week on the back of fund recovery in bankrupt cryptocurrency exchange platform, Futures Exchange (FTX).
Bitcoin had closed January 8, 2023 with $17,074.62, but according to analysis of figures obtained from bitcoin price aggregator, CoinGecko, it closed Friday with $19,941.78.
The price tag of bitcoin increased by $2,867.16 during the period in review, and in similar fashion, Ripples Nigeria analysis showed that investment of BTC investors grew by 16.7 per cent within five days.
The rise in investment value of bitcoin holders represents N37 billion gain in bitcoiners’ wallet between Monday to Friday.
This also lifted the market valuation of bitcoin to $363.38 billion at the end of January 13, surpassing the $326.37 billion capitalisation held by BTC late last week Sunday.
The gain indicates investors renew their confidence in bitcoin, clinching on to the crypto-asset into the weekend, as it was revealed in mid-week that $5 billion belonging to creditors or investors of FTX has been recovered.
Recall that fear of investing in cryptoassets was compounded by the crash of FTX, which announced bankruptcy due to alleged misuse of investors and creditors’ funds.
The founder of FTX, Sam Bankman-Fried, has been accused of using creditors’ and investors’ funds for marketing on Basketball arena, music concert, as well as sponsor political campaign of United States President, Donald Trump.
The total funds lost to FTX mismanagement is set between $5 billion to $10 billion, but the actual amount is unknown.
Updating FTX creditors and investors on Wednesday, Landis Rath & Cobb attorney, Adam Landis, on behalf of Futures Exchange, said about $5 billion worth of liquid assets have been recovered.
Landis said, “We have located over $5 billion of cash, liquid cryptocurrency and liquid investment securities measured at petition date value.”
Despite report that all the assets can’t be sold at once in exchange for cash, the recovery report was enough to excite the cryptocurrency market and build hold confidence among crypto investors.
