Interested in FTX’s cryptocurrency? Not so much, it seems. Its price has just exploded upwards, taking +94% in less than a day. The reason: rumours of an acquisition… And an unexpected endorsement from the head of the SEC. Here’s the lowdown
FTX’s FTT share price explodes on the rise
One year ago, almost to the day, the price of FTT suffered a catastrophic fall. While it was still over $25 on November 6, 2022, it had plummeted to $2 by November 8. The lightning collapse of the FTX giant left little room for doubt: the cryptocurrency was given up for dead.
But was the burial hasty? This is what the price of FTT, which has been exploding since yesterday, seems to suggest. FTX’s native cryptocurrency has gained +94% in less than 24 hours, thanks to several successive rises:
FTT’s price explosion since yesterday
How then to explain this sudden rebound, for an asset that everyone considered to be finished?
A string of positive news for FTX
This “pump” can be explained by several factors, which have come together over the last few weeks. On the one hand, the first trial of Sam Bankman-Fried ended last week, with the former FTX CEO being found guilty of all the charges against him. On the other hand, more and more rumors are circulating about the possible relaunch of FTX. Several buyers are reportedly circling around the company, which still has a coveted customer base.
This week, however, the final trigger for the FTT pump seems to have been a statement by Gary Gensler. The SEC director explained yesterday that it was entirely feasible to relaunch FTX, if the company is run in the right way:
” I would say “do it within the law”. Regain the trust of investors […] and make sure you disclose the right things – and also make sure you don’t mix all the functions, don’t trade against your customers. Or use their crypto assets for your own account. “
The signal sent out is strong: it shows that Gary Gensler, who is a scarecrow in the cryptocurrency industry, will not sue FTX on principle. At the same time, a rumor also suggests that Tom Farley, ex-chairman of the New York Stock Exchange, has his sights set on the platform. This established figure – with his roots in “traditional” finance – is helping to boost confidence.
Between FTX’s potential relaunch and the confidence of a Wall Street heavyweight, FTT’s share price has surged. This shows once again that in the cryptocurrency sector, the one and only thing that counts is investor confidence.
