FTT Hits Yearly High
The price of FTT, the exchange token for bankrupt cryptocurrency exchange FTX, is rising daily, hitting a new high the day before on expectations that FTX will reopen.
FTT has soared in the two weeks since the conviction of FTX founder Sam Bankman Fried (SBF). On Thursday, the price of the FTX token FTT jumped more than 80% overnight after Securities and Exchange Commission (SEC) chairman Gary Gensler hinted at the possibility of FTX resuming operations. “I think it’s possible for FTX to resume operations if the new management operates within the bounds of what’s legal,” Gensler said in a CNBC interview.
FTT is currently trading at $4.39, up 23% from the previous day, according to Coinmarketcap. It’s up 270% from a week ago.
As of 10 October, the total number of FTX token transactions was 5618. The index
is the total number of transactions that occurred regardless of whether a token transfer was executed.
Let’s take a look at the reasons behind the FTX price increase.
Anticipation of FTX reopening
It has been reported that several companies, including one founded by Tom Farley, former CEO of the New York Stock Exchange (NYSE), are interested in acquiring FTX. In total, three companies are said to be trying to acquire FTX. Initially, more than 70 companies were vying to relaunch FTX, but this has now been narrowed down to three. A decision is expected in December. However, it is not impossible that new competitors will emerge in addition to these three.
Expectations for FTX’s asset recovery
FTX has sued another crypto exchange, Bybit, and two of its affiliates in a Delaware court. It is seeking to recover $953 million in cash and digital assets (cryptocurrencies) that Bybit withdrew before FTX filed for Chapter 11 bankruptcy protection last November.
FTX said: “Bybit’s investment arm, Mirana Corp, received VIP-level benefits not available to FTX’s regular customers. These privileges allowed them to withdraw most of their assets before FTX filed for bankruptcy last November. While FTX customers waited for hours to withdraw their funds, Bybit pressured FTX employees to process the withdrawals. Between the early hours of 7 November and 8 November, an estimated $3.27 billion in assets were withdrawn”.
What is the FTX token?
The FTX exchange, created by SBF and Alameda Research, has made a huge impact, particularly through its leveraged trading tokens. With the listing of the BULL and BEAR tokens on Binance, Binance investors took notice of the FTX token, and the scandals that followed only helped the FTX token.
A year after its inception, the FTX exchange launched an exchange token called the FTX Token or FTT. The FTT coin is an ERC-20 standard token that is actively used by participants in the ecosystem.
The FTX token can be used directly to pay fees on the FTX exchange, and many cryptocurrencies are known to trade pairs with the FTT token. The FTX token is considered a cryptocurrency that can maintain an upward trajectory as long as the exchange exists.
Initially FTT was created as a reward for trading on the exchange, but over the years the list of features has grown:
FTT can be used to create leveraged tokens on the FTX exchange, users can receive VIP discounts on FTT based on the number of coins they hold, and they can be rewarded for providing liquidity through futures positions.
The exchange regularly buys and burns tokens to maintain the value of the token and spends 33% of trading fees, 10% on reserves and 5% on other fees to purchase FTX.
View other articles: TIA Bybit Listing: Explore the World of Celestia
(Content created on Web3 Builders is copyrighted by Web3 Builders. Please credit the source when quoting. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.)