FTX News: During a court hearing on Wednesday, Sullivan & Cromwell’s attorneys for FTX revealed that management is considering the possibility of reopening the crypto exchange in Q2 2023 as it navigates the bankruptcy process. In light of this news, FTX’s native cryptocurrency, FTT, rose nearly 25% in the past hour, while posting a stunning 105% gain over the course of 24 hours.
Optimism is growing for affected coins
While the FTX lawyers have not formally presented a resurrection plan – which would then be submitted to the court for approval – the mere proposal to revive the crazed crypto exchange seems enough to push the token higher. Following the announcement of the news, the price of FTT rose to just over $3, while 24-hour trading volume on the exchanges skyrocketed by more than 2,000%.
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This raises the question of whether a similar rally can be expected from coins that fell victim to FTX’s colossal demise. Due to their closeness to the FTX empire – whether through investments, lines of credit or other exposures – coins such as Solana, Cronos, Nexo and Near were hit hard as they bore the brunt of the brunt than other altcoins at the time.
Signs of an impending rally?
As a result of the continued optimism surrounding the FTX exchange, Solana’s price witnessed a significant 5% upside, while NEAR posted a 7.8% gain within minutes. Meanwhile, both Cronos and Nexo showed marginal gains of over 1% within minutes of the FTX news.
In that case, if FTX.com is rebooted or if an official strategy is presented in the reorganization plan – scheduled for July – these coins could see a further price increase and help regain their former prowess lost in the horrific aftermath of the FTX collapse.
As evidenced by the recent price hike of FTT, the potential comeback of FTX has been met with much optimism from FTT traders and investors alike. However, the larger crypto community is still in the doldrums of its efficiency as confidence appears to have faded as Bankman-Fried’s reckless business practices come to light. It was recently revealed that SBF was joking with its employees about wasting and losing track of crypto funds amounting to $50 million.
As things stand, the price of FTT is switching hands at the time of writing to $2.65.
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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.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
This post What Other Affected Coins Will Collect After FTT?
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