FTX 6.8 Trillion Won Sized Bond Repayment Imminent… Market, Nervous Over Liquidation Concerns

The creditors of the bankrupt cryptocurrency exchange FTX are soon to receive a repayment of approximately $5 billion (about 6.86 trillion won), drawing the market's attention. U Today reported on this issue stating, “There is a possibility that FTX creditors might not reinvest the repaid assets into cryptocurrency but instead cash them out, increasing uncertainty in investment sentiment.”

Among current market participants, there is ongoing debate over whether the repayment, which will be made in the form of stablecoins, will flow back into the cryptocurrency market or be cashed out, causing capital outflow. In the latter case, there are concerns that selling pressure may be triggered, dampening market expectations.

The repayment schedule for FTX creditors is set for May 30 local time, and attention is focused on how this repayment will affect market liquidity and investment direction. The cryptocurrency market is sensitive to such large-scale capital movement possibilities, making an expansion of short-term volatility inevitable depending on the actual response of creditors.