As the FTX bankruptcy case and fraud charges against co-founder Sam Bankman-Fried continue to unfold, the value of the exchange’s token, FTX Token (FTT), has seen significant growth. Since Jan. 9, 2023, FTT has risen 28.42% and currently sits above the $1 range, following a dip below that threshold.
FTT Token Jumps 28% Rising Above the $1 Threshold
The value of FTX’s exchange token, FTT, has seen a marked increase over the past two days. On Jan. 9, 2023, the coin reached $1.36 per unit. While some of those gains have been lost, FTT is currently holding above the $1 range at $1.22 per coin as of 9:30 a.m. Eastern Time on Jan. 11, 2023. The reason for this surge in value is uncertain, as FTT’s tokenomics are tied to the now-defunct FTX exchange and its potential future growth.
FTT’s levels of ownership concentration are extremely high, with a single address controlling 59.55% of the entire FTT supply. Additionally, an unknown hacker holds 45.85 million FTT tokens, comprising 13.94% of the circulating supply. Another unknown address holds 10 million FTT, or 3.04% of the total supply. FTT’s value fell below the $1 range on Dec. 19, 2022, and remained below that threshold until a spike on Jan. 9, 2023.
The most active crypto exchanges trading FTT currently include Binance, Mexc Global, Kucoin, Gate.io, and Sushiswap. On Sushiswap alone, there is roughly $104,496 in FTT trades paired against wrapped ethereum (WETH). The overall global trading volume for FTT is approximately $23.81 million among all exchanges worldwide. Since the FTT token’s all-time low 12 days ago on Dec. 30, 2022, when it reached $0.827 per unit, it has risen 45.8%. However, it remains 98.6% down from its all-time high of $84.18 per unit reached on Sept. 09, 2021.
With Sam Bankman-Fried (SBF) facing charges of financial fraud and FTX filing for bankruptcy, the future of FTT is uncertain. Despite this, the token has not experienced the same sharp decline as Terra’s LUNA did last May. FTT’s tokenomics were closely tied to those of FTX, including providing traders with reduced fees on the now-defunct crypto exchange, and now the coin’s tokenomics are in disarray.
FTT is among many crypto assets that have managed to survive despite a lack of development or clear tokenomics. It has now become something for traders to speculate on as a hobby, and in light of the ongoing scandal involving SBF and FTX, it is difficult to view it seriously.
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