The native cryptocurrency token of the recently collapsed exchange, FTX is surging in value.
The crypto asset began freefalling on 7th November 2022 after a report by Coindesk was released, investigating the value underpinning the token. At the time FTT was valued at around $3 Billion, trading around $22 per coin.
In just a few days, FTT fell to a low of $1.26, followed by a slow decline to lows of around $0.80.
The all time high (ATH) of FTT was $77.69 back on 9th September 2021.
FTT Coin Rebounds
With the company now bankrupt, $Billions wiped off the total crypto market cap and Millions of dollars lost by countless customers, it seemed like FTX’s days were long gone.
On the 9th January 2023 however, the price started climbing again.
The ‘failed’ cryptocurrency has rebounded over 230% since the lows just weeks prior, hitting recent ATH’s of $2.70.
Why did FTX Fail
FTX’s founder, Sam Bankman-Fried (SBF) has found himself in hot water, claiming he had no idea the company was in such a terrible situation. He’s currently out on parole, subject to house arrest while he awaits what’s likely to be an incredibly lengthy trail.
SBF founded another company prior to FTX called Alameda Research, which was supposed to be ran as a completely separate entity, headed up by Caroline Ellison.
Investigations found FTX had been lending FTT token and other assets, essential FTX’s customer funds to Alemeda Research in order to fund their trades.
Audits have recently discovered over $400 Million of cryptocurrency was ‘stolen’ back in November 2022. $5.5 Billion worth of assets have been discovered which can help pay back it’s creditors.
FTX Current CEO Resurrection Claims
Following the bankrupsy, John J. Ray III has been appointed CEO in an effort to recover as many assets as possible to pay back what FTX owes.
Ray is reportedly looking to examine whether FTX’s revival would compensate its customers better than selling the exchange or liquidating its assets.
The news seems to created some level of confidence in the market, although the coin and exchange still has some way to go before it could, if ever, regain the status as one of the top cryptocurrency exchanges on the planet again.
