Despite the ongoing bankruptcy proceedings and allegations of fraud against one of its co-founders, the value of FTX’s token, FTT, has experienced a surge in recent days. Since January 9, 2023, FTT has experienced a 28.42% increase and currently holds a value above $1, recovering from a brief dip.
FTX’s FTT Token Jumps 28%, maintains value Above the $1 Threshold
FTX’s exchange token, FTT, has experienced a significant boost in value over the past 48 hours. On January 9, 2023, the coin reached the value of $1.36 per unit. Despite a slight dip, FTT has been able to maintain a value above the $1 range and is currently trading at $1.22 per coin as of 9:30 AM Eastern Time on January 11, 2023. The reason behind this sudden increase in value is unclear, as FTT’s value is closely linked to the now-defunct FTX exchange and its potential future growth.
FTT’s ownership is heavily concentrated, with a single address holding 59.55% of the total FTT supply. Additionally, an unknown hacker has possession of 45.85 million FTT tokens, equivalent to 13.94% of the circulating supply. Another unknown address holds 10 million FTT, accounting for 3.04% of the total supply. The value of FTT dropped below $1 on December 19, 2022, and stayed below that level until experiencing a spike on January 9, 2023.
Currently, some of the most active exchanges trading FTT include Binance, Mexc Global, Kucoin, Gate.io, and Sushiswap. On Sushiswap alone, there is about $104,496 worth of FTT trading against wrapped Ethereum (WETH). The total global trading volume for FTT is around $23.81 million across all exchanges worldwide.
Since the FTT token’s lowest point 12 days ago on December 30, 2022, when it was valued at $0.827 per unit, it has increased by 45.8%. However, it remains 98.6% down from its all-time high of $84.18 per unit which was reached on September 9, 2021.
The future of FTT is uncertain given the financial fraud charges against its co-founder, Sam Bankman-Fried and the bankruptcy of FTX. Despite these challenges, FTT has not seen the same sharp drop in value as Terra’s LUNA token did in May of last year. FTT’s value was closely tied to the performance of FTX, including reduced trading fees on the now-defunct exchange, but with the exchange gone, the tokenomics of the coin are in disarray.
FTT is among a number of crypto assets that have managed to maintain value despite a lack of ongoing development or clear tokenomics. As a result, it has become primarily a speculative investment for traders, rather than being viewed as a serious asset. This is especially true given the ongoing scandal surrounding SBF and FTX, making it difficult to view the future potential of the token with any certainty.
Johnson Philip is a passionate cryptocurrency enthusiast and writer for CoinSEM.com. He has been following the crypto industry for years, and has a deep understanding of the various technologies and trends driving the market. Johnson has written extensively on topics ranging from blockchain development to ICO analysis and is known for his ability to translate complex technical concepts into easy-to-understand language.