FTT, the native token of the defunct cryptocurrency exchange FTX, witnessed a remarkable 84% overnight surge in value. The catalyst for this surge was the recent comments made by SEC Chair Gary Gensler, indicating his willingness to consider the revival of FTX, “within the law.
FTT is currently trading at $2.18, with a notable 71.35% increase in its price over the last 7 days. This impressive price movement suggests growing investor interest and positive sentiment surrounding the token. This level of trading activity indicates a healthy and active market for FTT. Gary Gensler’s comments came in the wake of reports suggesting that three potential buyers were showing interest in FTX, with one of them being the former NYSE president, Tom Farley, and his cryptocurrency exchange, Bullish.
During an interview with CNBC, Gensler expressed his stance on the potential revival of FTX, emphasizing the importance of operating within legal boundaries. He advised prospective owners, saying, “If Tom or anybody else wanted to be in this field, I would say, ‘Do it within the law.'” Gensler also stressed the need to build trust among investors and ensure transparency, avoiding practices like trading against customers or misusing their crypto assets.
However, it’s essential to view FTT’s recent price surge in the context of its historical performance. The token has faced significant challenges, currently trading at a fraction of its all-time high of $84.18, which was recorded in September 2021.
FTT’s decline could be traced back to its involvement in the downfall of FTX in November 2022. FTX had cashed out Binance’s equity stake using FTT tokens in July 2021. Later on, Binance liquidated its holdings, citing “recent revelations.” This event triggered a series of consequences that eventually led to the collapse of FTX.
Additionally, it came to light that FTX’s sister trading firm, Alameda Research, had utilized the FTT token as collateral for multi-billion dollar loans and commingled funds from FTX users, further exacerbating the exchange’s troubles. Notably, the founder of FTX, Sam Bankman-Fried, recently faced the consequences of these issues. He was found guilty of seven counts of fraud and conspiracy related to the collapse of the exchange, potentially facing a maximum sentence of 115 years in prison.
The resurgence of FTX, albeit uncertain, has breathed new life into the FTT token’s value. Nevertheless, the token’s tumultuous history serves as a stark reminder of the challenges that lie ahead for any prospective revival of the exchange.
