FTX Bankruptcy Distributions to go Effective in January

FTX customers affected by the exchange’s collapse will soon receive bankruptcy distributions, with the plan set to be effective on January 3, 2025. Kraken and BitGo have been appointed as distribution partners, with an initial distribution expected within 60 days of the effective date.

John J. Ray III, CEO of FTX Debtors, stressed the recovery of billions of dollars and the plan’s success. Approximately 98% of creditors will receive at least 118% of their claim value in cash under the reorganization plan.

Additional distribution partners and dates for other claim classes will be announced in due course. Customers must complete KYC verification and onboarding with the distribution partners to receive payments. FTX filed for bankruptcy in late 2022 losing investors over $6.83 billion.

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Ripple to Debut RLUSD Stablecoin on December 17

Ripple will release its US dollar-backed stablecoin, RLUSD, on December 17, initially on the XRP Ledger and Ethereum networks. RLUSD is fully backed by USD deposits, US government bonds, and cash equivalents, aiming for price stability at $1. The stablecoin has received regulatory approval from the New York Department of Financial Services.

Ripple has also appointed former central bankers Raghuram Rajan and Kenneth Montgomery to its advisory board. Early demand could cause temporary price volatility, with the CTO cautioning against speculative buying. RLUSD aims to compete with established stablecoins like Tether’s USDT and Circle’s USDC, offering real utility for cross-border payments.

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Avalanche Activates Avalanche9000 Upgrade

Avalanche has implemented its Avalanche9000 upgrade, the largest in its blockchain history. The changes, including ACP-77 and ACP-125 proposals, aim to reduce costs and attract developers to build on Avalanche’s network. ACP-77 introduces a new type of validator to make launching subnets more affordable, while ACP-125 lowers base fees on its C-chain for smart contracts.

Ahead of the upgrade, Avalanche raised $250 million in a token sale led by major investment firms. The network seeks to expand its ecosystem by enabling developers to create customized blockchains, known as subnets or “L1s". So far the AVAX token has been neutral in price action with +0.54% in the last 24 hours and just +2.01% in the last 7 days.

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Ethena Launches BlackRock-Backed USDtb Stablecoin

Ethena has launched USDtb, a new stablecoin backed by BlackRock’s BUIDL fund, a move away from its derivative-backed USDe token. USDtb operates like traditional stablecoins, fully backed by reserve assets, with 90% held in BUIDL and 10% in stablecoins for liquidity. The token hopes to offer a different risk profile, serving as a safe haven during volatile markets.

USDtb will also act as a reserve asset for USDe, mitigating risks from negative funding rates. Ethena’s expansion aligns with the growing demand for diverse stablecoin options and strengthens its risk management capabilities. While many other institutions plan to enter the competitive stablecoin market in 2024, Ethena's USDtb will be extremely important for RWA projects.

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Data of the Day

Asia now accounts for 32% of global crypto developer activity, up from 12% in 2015, according to Electric Capital’s annual report. India leads the surge with an 11.7% share, surpassing all other regions except the U.S. Despite a 7% global decline in developer activity, experienced developers with over two years in the industry now contribute 70% of code commits.

Even though Ethereum remains the dominant platform, Solana has become the preferred choice for new developers, securing second place in major markets. Emerging markets, especially in Asia, are driving the crypto industry’s growth, reflecting its maturation and geographic diversification.

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More Breaking News

• MicroStrategy has purchased 15,350 BTC for $1.5 billion, bringing its total holdings to 439,000 BTC, worth $45.6 billion.
• Riot Platforms expanded its Bitcoin reserves to 17,429 BTC, valued at $1.8 billion, financed through a $594 million bond offering.
• Aave DAO is reviewing its operations on Polygon, citing concerns about a $1 billion stablecoin farming proposal and crypto bridge risks.
• Reports suggest Donald Trump is indeed considering an executive order to establish a Strategic Bitcoin Reserve using the Treasury’s Exchange Stabilization Fund.
• Grayscale Bitcoin Trust has suffered $21 billion in outflows this year, while other US spot Bitcoin ETFs maintain positive net flows.
• Mark Longo has issued a cease-and-desist to Binance, alleging unauthorized promotion and listing of the PNUT meme coin based on Peanut the Squirrel.
• Hyperliquid’s native token, Hype, has surged 590% since launch, driving $1 billion USDC inflows and setting a $4.3 billion open interest record.
• Crypto investment products have attracted $44.5 billion in year-to-date inflows globally, marking a record high, with $3.2 billion added last week alone.

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