The Daily: FTX's reorganization plan gains the support of most creditors, EigenLayer's token begins trading and more

Happy Tuesday! In today's newsletter, FTX's reorganization plan gains the support of most creditors, EigenLayer's token begins trading, Metaplanet boosts its bitcoin holdings and more.

Meanwhile, Iran's missile threat against Israel rattles markets as Coinbase and bitcoin mining stocks sell off.

Let's get started.

FTX's reorganization plan gains the support of most creditors

Over 94% of the collapsed crypto exchange FTX's creditors in the "dot com customer entitlement claims" class — representing about $6.8 billion in value — voted in favor of its reorganization plan , restructuring firm Kroll disclosed in a filing on Monday.

• Nearly all classes of creditors voted to accept the plan, with approximately 89% of "U.S. customer entitlement claims" who returned ballots and 96% of "dot com convenience claims" also voting in favor, representing roughly $61 million and $224 million in value, respectively.
• Two other classes of creditors did not return ballots and were presumed to accept the plan.
• More than two-thirds of all solicited claims by voting value participated in the process, with the reorganization plan's confirmation hearing set for Oct. 7.
• Under the FTX bankruptcy plan, around 98% of creditors are set to receive at least 118% of their claim value in cash.
• However, the claims were evaluated based on their fiat value at the time of FTX's bankruptcy in November 2022, not at current higher crypto prices.

EigenLayer token goes live for trading on exchanges at $7 billion FDV

EigenLayer officially lifted transfer restrictions on its native token at midnight ET on Monday, enabling EIGEN to begin trading on various exchanges.

• EIGEN currently trades at around $3.90, giving EigenLayer a fully diluted token valuation of $6.6 billion, according to CoinGecko.
• The lifting of the restrictions follows the distribution of EIGEN during EigenLayer's two stakedrops, with 186.6 million tokens now circulating from a total supply of 1.68 billion.
• EigenLayer allows users to stake ether to secure third-party networks or actively validated services and has over $12 billion in total value locked, down from a $20 billion peak in June.

Metaplanet acquires another $6.9 million in bitcoin, taking holdings to $32 million

Tokyo-listed investment firm Metaplanet announced it had purchased an additional 107.9 BTC ($6.9 million) on Tuesday, bringing its total holdings to 506.7 BTC ($32 million).

• The firm made its latest acquisitions at an average price of $64,168 per bitcoin.
• Metaplanet's current holdings were purchased at a total cost of around $33 million, meaning it is slightly down on its investment since adopting bitcoin as a strategic treasury reserve asset in May.
• Metaplanet stock closed up 1.72% on Tuesday following the news.
• Meanwhile, Michael Saylor's MicroStrategy remains the largest corporate bitcoin holder, owning 252,220 BTC worth $15.7 billion.

Investors upset at Pike Finance's token launch over liquidity shortfall

Early investors in DeFi protocol Pike Finance were upset about the token's launch on Monday, with the team only providing $10,000 in initial liquidity on the Base DEX Aerodrome.

• Due to the limited liquidity, the token's price quickly fell to around $0.0035 — a decrease of approximately 90%, according to DEXScreener data, leaving investors with significant losses.
• Pike Finance raised $6.5 million in its March 2024 presale, with participants buying tokens at prices ranging from $0.0280 to $0.0374, leading investors to question why the liquidity at launch was so low.
• Nuts Finance, the team behind the protocol, has developed several other crypto projects, including ACoconut, which saw a similar dramatic token price decline, with its website now offline.
• The Peak Finance project also previously faced two smart contract hacks, losing a total of $1.9 million, compounding concerns.

Vitalik Buterin says he supports the existence of Hezbollah betting section on Polymarket

Vitalik Buterin said he supports the existence of a Hezbollah betting section on the decentralized predictions platform Polymarket.

• Crypto community member "Legendary" had raised concerns that the section "makes a war look like a football game to bet on."
• In response, Buterin argued that from a trader’s perspective, Polymarket is a betting site, but from a viewer's perspective, it’s a news site.
• "I support these existing," he said, adding, "There are all kinds of people (incl elites) on Twitter and the internet making harmful and inaccurate predictions about conflicts and being able to go and see if people with actual skin in the game think that something has a 2% chance or a 50% chance is a valuable feature that can help keep people sane."

In the next 24 hours

• U.S. mortgage data are released at 7 a.m. ET on Wednesday.
• U.S. FOMC members Michelle Bowman and Thomas Barkin will speak at 11 a.m. and 12:15 p.m., respectively.
• Mainnet concludes in New York.

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