FTX comeback reports cause a surge in its native token FTT
The value of FTX’s native token has soared by 63% amidst rumors of an exchange comeback after recovering over $7.3 billion in cash and liquid crypto assets
After FTX announced that it had successfully recovered over $7.3 billion, its price surged from $1.31 to over $2 in a few minutes.
It was recently disclosed by the exchange’s attorney, Andy Dietderich, that the corporation is mulling over the possibility of relaunching the contentious cryptocurrency exchange during the second quarter of this year.
According to data provided by CoinMarketCap, the 24-hour trading volume for FTT is currently at $456 million, as the volume surged by over 1800% as of press time.
The FTT rate is still over 95% lower than its all-time high. It hit an all-time high of $84.18 in September 2021 but then plunged to an all-time low of $0.827479 in December 2022 when the exchange filed for bankruptcy and creator Sam Bankman-Fried was jailed. Critics have expressed reservations about the dependability of the cryptocurrency market despite the recent increase in the price of FTT.
As some critics have pointed out, the problem with decentralization is that it often leads to currencies that can be cheaply replicated and maintain their value despite the absence of any inherent backing. This doubt sheds light on a longstanding argument over the viability of digital currencies, particularly those affiliated with questionable exchanges such as FTX.
As the exchange works to reestablish itself in the cryptocurrency market, the future of FTX and its native token, FTT, continues to be clouded in uncertainty.