The value of FTX’s controversial FTT token rose more than 33% after the insolvent company’s newly appointed CEO, John J. Ray III, stated that he is exploring the prospect of relaunching the crypto exchange. The price of the FTX Token (FTT) reached $2.41 on rival exchange Binance, representing a gain of 73% over the past seven days.
FTX Token (FTT) Price Increase
On Thursday, Ray, who oversees the bankruptcy and restructuring of the FTX business empire, said he has assembled a task team to investigate the possibility of a relaunch of FTX.com. This information made huge headlines, which in turn resulted in the price increase for the cryptocurrency. It is estimated that speculative investors currently own the altcoin as most serious investors have lost confidence after the centralized exchange filed for bankruptcy in the United States.
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The role of FTT in the collapse of FTX
The demise of FTX was hastened by FTT in its most fundamental form. The cryptocurrency, like other native tokens, was used in part as an incentive to drive transactions to the exchange by providing discounts to its holders. This was done similarly to other native tokens such as BNB for Binance and KCS for KuCoin. However, using FTT didn’t seem to be a problem until it was discovered that not only was token one of the most important assets on FTX’s balance sheet, but also that the tokens were being used as collateral by Alameda Research — to make a profit by accessing capital via both crypto lenders.
FTT is currently the 208th largest cryptocurrency with a market cap of $769 million, which has yielded a 28% gain in the past 24 hours. Trading of the token has also witnessed a surge in volume as it has surged nearly 63% to $84 million; mainly led by the Binance exchange. But even if the price of FTT has skyrocketed after the positive news, the token is still down nearly 97% from its all-time high of $84.18.
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Pratik has been a crypto evangelist since 2016 and has experienced almost everything crypto has to offer. Be it the ICO boom, the bear markets of 2018, Bitcoin’s halving so far – he’s seen it all.
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This post FTX Token (FTT) Price Surges 30% as CEO John J Ray III Plans to Restart Exchange
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