FTX Creditors: Recovery Rates & Inflation
As we’ve seen with the FTX collapse, creditors are now facing a brutal reality regarding their recovery rates. Initially, it was thought that they could get back up to 143%. But the truth is much harsher. The inflated prices of cryptocurrencies have skewed the actual value of their claims, meaning many might only see a small portion of what they put in. Let’s dive into what these recovery rates mean, the hope for getting more from airdrops, and what creditors can do moving forward.
The Reality of Inflated Crypto Prices
The recovery rates for creditors are actually way lower than what was first reported because of the inflated crypto prices. Estimates show that creditors may only get back 9% to 46% of their original investments in…
