The native cryptocurrency of the now-defunct crypto exchange FTX, FTT, experienced a significant rise, jumping over 70% to hit a multi-month high. This surge occurred on September 29, pushing the token’s price to $2.70, the highest since March 2024, as per CoinGecko’s data.
FTT, which maintained a stable price around $1.4 over the previous month, witnessed a sharp increase in its value, achieving a daily gain of over 70% on September 29. The price later settled at approximately $2.10 by September 30, marking a 30% rise within the last 24 hours.
Factors Driving the Rally
The significant uptick in FTT’s value appears to be fueled by rumors circulating on social media. These rumors suggest that the FTX bankruptcy estate might commence the distribution of reimbursement funds to creditors and customers by September 30. However, the official Chapter 11 documents indicate that the bankruptcy plan is still pending approval, with a court hearing scheduled for October 7.
Should the plan receive court approval, the FTX trustee is set to begin payments to creditors with claims under $50,000 by the end of 2024. Those with larger claims might have to wait until the first or second quarter of 2025 to receive their distributions.
- Launch and Benefits: FTX introduced FTT in 2019, shortly after the platform’s inception. The token provided several advantages, including trading fee discounts and the ability to serve as collateral on futures positions.
- Peak and Decline: FTT hit its peak at nearly $80 in September 2021 but declined to around $25 prior to the exchange’s collapse in November 2022.
- Post-Collapse Market Reaction: Post-FTX’s downfall, FTT’s value plummeted from $25 to under $2, largely due to a massive sell-off, including a notable disposal by Binance for risk management purposes post-exit.
July 2024 Repayment Plan Update
In a significant development this July, the proposed FTX repayment plan suggested excluding FTT claims from the bankruptcy proceedings, recognizing the “equity-like characteristics” of the token.
| Date | Event | Price Impact |
|---|---|---|
| Sept 2021 | All-time high of nearly $80 | Peak Price |
| Nov 2022 | FTX collapse | Dropped to < $2 |
| Sept 2024 | Surge to $2.70 amid bankruptcy distribution rumors | Rose to $2.70 |
| Oct 2024 | Scheduled court hearing for bankruptcy approval | Pending Outcome |
The recent surge in FTX Token’s value highlights the volatile nature of cryptocurrency markets, especially in scenarios involving major platform disruptions like bankruptcy. The upcoming court hearing and the subsequent decisions will be pivotal in determining the future trajectory of FTT’s price and the broader implications for its holders. As the situation unfolds, stakeholders remain vigilant, watching for any developments that might affect their recovery prospects from the FTX bankruptcy estate.
Featured image credit: Freepik
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