FTX’s FTT token rallies 30% — Binance effect or FTX 2.0 reopening?
This surge suggests significant institutional attention despite the token’s historical association with FTX’s financial challenges.
Amid market uncertainties around Changpeng "CZ" Zhao’s departure as Binance CEO, the in-house cryptocurrency of the FTX crypto exchange, FTX Token (FTT), witnessed a momentary bull run. FTT surged in market value by more than 55% in the past 48 hours and is currently trading at $4.63, reflecting a 30% increase from $3.56.
FTX’s native token is experiencing another surge following Binance’s $4.3 billion settlement with the United States Department of Justice, according to on-chain analyst firm Santiment. This goes against expectations that FTT would fall in price because it's the new token representing the FTX crypto exchange’s relaunch (FTX 2.0). The token’s value appears to have been boosted, with the ten largest wallets accumulating $12.8 million in coins in 19 days.
According to Santiment, FTT has recorded 337% growth on the monthly chart, with a significant portion of these gains occurring in the last ten days. Notably, the top 10 whale wallets have been heavily accumulating FTT during this period, leading to a 255% increase in FTT’s market value compared to Bitcoin.
Those who took a chance on $FTT continue to be rewarded, with a second rally for #FTX's native token coming after yesterday's #Binance news. Its price appears to have been boosted by the 10 largest wallets accumulating $12.8M worth of coins in 19 days. https://t.co/V3QNq91asF pic.twitter.com/DL5pkVfW96
— Santiment (@santimentfeed) November 23, 2023
FTX’s recent approach of liquidating assets and transferring substantial funds across different exchanges has triggered heightened activity in the cryptocurrency market. In a significant move, FTX and its affiliate, Alameda Research, executed a remarkable transfer of assets totaling $474 million.
However, this move could generate a depreciating effect on the FTT price. Data from Cointelegraph Markets Pro shows a decent chance to establish a price bottom at current lows since the market is now digesting the bad news.
This move is part of a broader effort to manage the exchange’s financial obligations and potentially pave the way for a new phase known as “FTX 2.0.” The FTX team plans to restart the exchange by the second quarter of 2024. Notably, this rise in FTT price occurs in the context of Binance’s $4.3 billion settlement with the United States Department of Justice.
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