Those who were said to be dead live longer – the situation of the in-house FTX token FTT can be summed up quite well under the motto. The insolvent stock exchange’s cryptocurrency is currently experiencing a second spring. On the last trading day alone, FTT recorded a whopping price increase of 40 percent. But how can you explain the rally of a token that collapsed a year ago? Two factors in particular stand out here.
Possible FTX comeback fuels FTT
FTT is making its comeback – and how. Since the beginning of the year, the token has recorded an increase of 400 percent, 40 of them in the last 24 hours alone. The cryptocurrency is currently at $4.13. The course is being fueled by rumors about FTX reopening. Sam Bankman-Fried’s crypto exchange crashed into bankruptcy a year ago. Since then, an experienced insolvency administrator has been appointed to bring the crypto company into shape and collect funds to pay off injured customers. There are currently three candidates in discussion. More here: This is what the reopening of FTX is like
Back then, investors saved trading fees when they paid for cryptocurrencies with FTT. Whether the token will fulfill a similar function again is currently part of the discussions. But there is no final decision yet.
FTT instead of BNB?
At the same time, the news about Binance seems to be fueling FTT even more. Last night, the US Attorney’s Office and the world’s largest crypto exchange agreed to a deal. Binance pays a total of $4.3 billion in fines and turns its back on the US market. CEO Changpeng Zhao must leave and face possible prison time. To this end, the Department of Justice and the CFTC are dropping their cases against the company.
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It is the highest fine ever imposed on a crypto company. Binance will likely be able to make the payment without any problems. It is difficult to say how severe the financial impact will be on the exchange because, as a private company, Binance is not required to publish recurring financial reports. However, mass layoffs in July raised doubts about the company’s economic health. In general, the news had a negative impact on the price of BNB, Binance’s own token. The coin suffered a loss of almost 10 percent in the last 24 hours. The circumstances seem to be playing into FTT’s hands. According to the Analysis platform Santiment Some investors have already exchanged their BNB for the FTX token.
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