FTT rose by double digits after SBF approved the trader’s recovery plan advice
The profit and loss on the chain remained in the same region
FTX token [FTT] posted a 30.39% rise in less than 24 hours after embattled founder Sam Bankman-Fried (SBF) agreed to a recovery plan. His agreement was in response to a proposal from CNBC crypto trader Ran Neuner.
I keep thinking this would be a productive path for parties to explore! I *hope* that the teams present will do so.
— SBF (@SBF_FTX) December 9, 2022
Read FTT’s price prediction 2023-2024
The trader believed that issuing a completely new FTT token and handing it out to creditors and depositors could help revive the token, which many had turned a blind eye to.
“I will testify”
However, the price of FTT was not the only part of the ecosystem that reacted. According to Santiment, the token’s volume has increased by more than 1300% in the past 24 hours. With an increase to $76.38 million, this meant that FTT gained market power with an impressive number of transactions through its network.
Source: Sentiment
Intense criticism followed Neuner’s view, as many pointed out that FTT was now a “Ponzi” and there was no way for recovery. Others said his proposal had glaring flaws. First, author and crypto investor Mark Deeks responded sarcastically by saying:
“The best way to repair the damage caused by this Ponzi scheme is to attract new investors to pay off the old ones.”
While most of the reactions to the proposal provoked disagreement, SBF turned around with one of its first decisions. The ex-CEO, on December 4, told the US House Committee on Financial Services that he could not testify about the events leading up to the FTX exchange crash.
Metal, he reverted to his earlier point of view. On December 9, he agreed to appear before the committee headed by Maxine Waters.
1) I still can’t access much of my data – professional or personal. So there’s a limit to what I can say, and I won’t be as helpful as I’d like.
But since the committee still thinks it would be helpful, I’m willing to testify on the 13th. https://t.co/KR34BsNaG1
— SBF (@SBF_FTX) December 9, 2022
FTT: No victor, no vanquished
SBF’s positive feedback may also have played a role in the token’s spike. In addition, the price increase may not be a usual market reaction or a pump-and-dump situation. This was because Santiment’s data showed that FTT had actual participants at the walk.
According to the on-chain platform, FTT’s 24-hour active addresses have risen to 414 at the time of writing.
As for the 30-day market value to realized value (MVRV ratio), it went from -34.70% to -13.81% in one day. This implied that FTT buyers who rallied after confirmation of the crumble made some profit from the token. Although the MVRV ratio increased, its stay in the negative region indicated that it was still overvalued.
Source: Sentiment
All in all, the price hike failed to rescue FTT holders from their imperiled assets. Santiment showed daily on-chain profit and loss close to 1.28 million and 1.2 respectively. A simplification of this meant that only a few active addresses had been added.
In other developments, SBF and Binance CEO CZ were still engaged in a war of words, with the former telling CZ, “You won.”
Source: Sentiment
This post FTT traders are in a high-risk zone amid SBF’s plans to relaunch token
was published first on https://ambcrypto.com/ftt-traders-stand-in-a-high-risk-zone-amid-sbfs-plans-to-relaunch-token/
