The FTT token, the native token of the FTX cryptocurrency exchange platform, seems to be making a comeback after a long dry spell. It has seen its price explode by over 250% in the last 7 days, but for what reasons?
Great comeback for FTT, FTX’s native token?
As the cryptocurrency market looks set to settle permanently above the symbolic $30,000 threshold, a new wind of hope is blowing through the crypto investor community. Bitcoin and Ether have fetched $38,000 and $2,140 respectively, heralding the start of a bull run provided the ETF narrative retains its solidity.
And, of course, the altcoin market has naturally followed Bitcoin’s rise. But there are some unexpected outsiders in this sector, notably FTX’s FTT token.
Launched in June 2021, FTT was the utility token within FTX, once one of the world’s largest crypto exchanges and considered one of Binance’s few rivals able to oppose its hegemony, notably alongside Coinbase.
FTT offered traders discounts on their trading operations and other benefits such as free withdrawals, airdrops and governance voting rights, all thanks to staking.
But in early November, when FTX finally declared bankruptcy, the FTT share price plummeted from $20 to just $2. Since then, it has fluctuated between just under 1 and 2.5 dollars, occasionally rising on rumours of a revival of the exchange.
Evolution of the FTT token price from the FTX bankruptcy to today
But today, the rumors are confirmed. While 75 companies came forward to evaluate the possibility of acquiring FTX, the Wall Street Journal revealed that 3 had been shortlisted, namely Bullish, a crypto exchange headed by Tom Farley, former chairman of the New York Stock Exchange (NYSE), fintech startup Figure Technologies, and Proof Group, a private equity firm.
At the same time, Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), declared that he had no objection to the revival of the crypto exchange provided it “regains the confidence of investors” and is done “within the confines of the law”. That’s all it took for investors to get excited, as the FTT token could perhaps regain its role as a utility token in the near future.
The 3 companies involved all declined to comment. But according to the timetable previously established by FTX, we can expect the exchange to designate the buyer of its choice as early as next December
