FTX creditors are expressing dissatisfaction with the payouts they are set to receive as the collapsed exchange prepares to distribute $16 billion to make its lenders whole.

The controversy stems from the significant fluctuations in cryptocurrency prices since FTX initially filed for bankruptcy.

FTX Lenders Unhappy With 10-25% Repayments

As BeInCrypto reported, FTX creditors will get between 10% and 25% of their crypto back. Notably, the repayments will come according to the petition date, which means when crypto prices were much lower. To put it in perspective, Bitcoin’s (BTC) price was $16,000 at the time and around $65,000 now.

The creditors are upset with the decision to use petition date prices for reimbursement. They argue that this reorganization plan won’t fully compensate for their losses, many of which included life savings. Several creditors have reported severe emotional tolls, including mental distress and panic attacks, as a result of the collapse.

“Can’t understand why a law can’t protect us investors about this scam,” said one victim in response to a post by FTX creditor activist Sunil Kavuri.

Read more: FTX Collapse Explained: How Sam Bankman-Fried’s Empire Fell

Many other responses followed, reflecting the displease and dissatisfaction of the creditors. The US Securities and Exchange Commission (SEC) also pointed to potential objections, especially if the defunct exchange decides to pay off creditors using stablecoins.

The complaints come weeks after FTX and Emergent Technologies agreed to secure $600 million in Robinhood shares to make creditors whole. Noteworthy, FTX founder Sam Bankman-Fried co-founded Emergent Technologies.

Under the terms, according to a September 6 motion by FTX CEO John Ray III in a Delaware Bankruptcy Court, FTX will pay Emergent $14 million to cover administrative expenses after it withdrew a petition to claim 55 million Robinhood shares and cash. The settlement also provides a path for Emergent to expedite the resolution of its bankruptcy case in Antigua.

According to FTX, this agreement would help recover more money for its creditors and avoid further litigation costs. Per the exchange, this would mark an important step in its reorganization plan to maximize value for creditors.

Read more: Who Is John J. Ray III, FTX’s New CEO?

According to John Ray III, this reorganization plan was the result of “good faith arm’s length negotiations between the parties and that such negotiations were free of any collusion.”

Frog-themed meme coin Pepe (PEPE) price has increased by 40% in the last seven days. This jump is in tune with the broader market relief.

Although the recent rally has sparked excitement, data shows that Pepe has hit a liquidity wall that could hinder further upside. This analysis explains what market participants should expect as the meme coin faces increased resistance.

Pepe Signal Casts Doubts on Further Upside

On September 16, Pepe’s price was $0.0000071. However, the gains of the last two weeks have sent the price to $0.000011 — a region where it currently stands. Due to the performance, there have been calls for PEPE to climb toward $0.000015.

However, the In/Out of Money Around Price (IOMAP) shows that it could be challenging. The IOMAP identifies the average price addresses purchased a token and shows whether they are making money relative to the current price or not.

When there is a higher volume at a price range, the region could either serve as support or resistance. For PEPE, the volume accumulated between $0.000011 and $0.00012 is 8.62 trillion tokens, valued at approximately $95 million, and is out of money.

Read more: How To Buy Pepe (PEPE) and Everything You Need To Know

This $95 million is higher than the volume purchased between $0.000010 and $0.000011. Since the former is higher, it indicates that the meme coin could face a sell wall as it approaches $0.000012. Consequently, failure to break this resistance could pull the uptrend.

Another indicator fueling this bias is the Relative Strength Index (RSI), a technical oscillator used to measure momentum. When the RSI rises, momentum is bullish. However, a falling reading suggests bearish momentum.

The RSI also shows whether a cryptocurrency is overbought or oversold. Readings above 70.00 mean it is overbought, while those below 30.00 mean it is oversold. As seen below, the RSI on the PEPE/USD daily chart shows that the token is overbought, and the price might decline.

PEPE Price Prediction: Bearish Days Ahead

At press time, PEPE’s price is $0.000011. However, the daily chart shows the appearance of a sell signal as the meme coin attempts to enter the supply zone at $0.000013.

Following shift, the token may face challenges in rallying toward the expected $0.000015 mark. Instead, it might have to focus on maintaining support at $0.000010. Should the token fail to defend this crucial level, it could have serious consequences for the meme coin, potentially driving the price down to $0.0000095.

Read more: 5 Best Pepe (PEPE) Wallets for Beginners and Experienced Users

In a highly bearish situation, PEPE’s price might decline to $0.0000084. Meanwhile, the token’s value could resist another drop if bulls successfully push it beyond $0.000013. In that scenario, the cryptocurrency might move closer to $0.000020.

The crypto market is gearing up for one of its biggest token unlock events in 2024, with over $3 billion worth of tokens set to be released in October. 

BeInCrypto has highlighted the top three unlocks that will introduce a substantial influx of assets into the market.

October Token Unlocks: What to Expect

Data from TokenUnlocks indicates that approximately $1.6 billion of this month’s token unlocks are classified as cliff unlocks. In the context of token unlock events, cliff refers to tokens set to release on a schedule that’s more periodic than daily, such as weekly, monthly, or yearly.

Since token unlocks introduce previously unavailable tokens into circulation, investors and traders closely monitor these events because they affect the market environment. While some view these events as growth opportunities, they also carry the risk of increased selling pressure.

“Uptober is just around the corner — Stay Informed, Not FOMO-Driven. With $3.46B in token unlocks scheduled for the month, it’s essential to keep a close eye on the market,” the Token Unlocks team wrote.

This month’s most significant cliff token unlocks include Celestia (TIA), Sui (SUI), Immutable (IMX), Aptos (APT), and Arbitrum (ARB).

Sui (SUI)

On October 1, Sui will unlock 64.19 million tokens. These tokens, worth approximately $106 million, account for 2.40% of its circulating supply. The distribution of these tokens will be as follows:

• Series A: 19.84 million SUI ($32.93 million)
• Series B: 19.32 million SUI ($32.07 million)
• Early contributors: 10.34 million ($17.16 million)
• Mysten Labs treasury: 2.07 million SUI ($3.44 million)
• Community reserve: 12.63 million SUI ($20.96 million)

Read more: Everything You Need to Know About the Sui Blockchain

Immutable (IMX)

Following Sui, Immutable will release 32.47 million IMX tokens on October 4. These tokens, worth roughly $59.10 million, translate to 2.02% of IMX’s circulating supply. They will be distributed to the ecosystem and project developments, with the details as follows:

• Ecosystem development: 15.91 million IMX ($28.96 million)
• Project development: 16.56 million IMX ($30.14 million)

Aptos (APT)

Aptos’ unlock on October 11 will see 11.31 million APT tokens enter the market. This figure equals 2.25% of APT’s total supply, with a total value of $96.25 million.

The distribution of these tokens will be as follows:

• Foundation: 1.33 million APT ($11.35 million)
• Community: 3.21 million APT ($27.32 million)
• Core contributors: 3.96 million APT ($33.69 million)
• Investors: 2.81 million APT ($23.90 million)

Read more: Where To Buy Aptos (APT): 5 Best Platforms for 2024

Arbitrum (ARB)

On October 16, Arbitrum will release 92.65 million ARB tokens, worth $61.90 million. This significant unlock represents 2.56% of ARB’s circulating supply. The distribution of these tokens will be as follows:

• Team, future team, and advisors: 56.13 million ARB ($37.50 million)
• Investors: 36.52 million ARB ($24.40 million)

Celestia (TIA)

Finally, on October 30, Celestia will unlock 175.56 million TIA tokens, valued at $1.12 billion. These tokens will be allocated to early backers and initial core contributors. The breakdown of this token unlock allocation will be as follows:

• Early Backers Series A&B: 65.01 million TIA ($414.76 million)
• Early Backers Seed: 52.47 million TIA ($334.76 million)
• Initial Core Contributors: 58.08 million TIA ($370.55 million)

Beyond these major unlocks, the market will also see cliff token unlocks from other notable projects in October, including Starknet (STRK), ZetaChain (ZETA), and ApeCoin (APE).