Originally published on: September 30, 2024
FTX Token, the native cryptocurrency of the bankrupt crypto exchange FTX, experienced a significant spike of over 70% recently, reaching heights not seen since March 2024, according to CoinGecko data.
Over the past month, FTX Token, abbreviated as FTT, had been trading around $1.40 but saw a sudden surge on September 29, briefly hitting $2.70. As of September 30, the token was trading at approximately $2.10, marking a 30% increase in just 24 hours.
Rumors circulating on social media suggested that distributions from the FTX bankruptcy estate to creditors and customers were imminent, potentially fueling the spike in FTT prices. While a court hearing to approve the bankruptcy plan is scheduled for October 7, the official approval is still pending.
Sunil Kavuri, an activist involved in the case, provided insights into the upcoming distribution process. Smaller creditors may receive reimbursements by the end of 2024, while larger claims could take until the first or second quarter of 2025.
FTX launched FTT shortly after the platform debuted in 2019, offering users benefits such as trading fee discounts and collateral for futures positions. The token hit an all-time high of nearly $80 in September 2021 before dropping to around $25 and later plummeting to below $2 after FTX’s collapse in November 2022.
Binance’s decision to liquidate its FTT holdings in 2022 for risk management purposes was a significant factor in the token’s decline, with the market cap currently standing at around $330 million.
Despite the uncertain future of FTT amid the bankruptcy proceedings, its recent surge has caught the attention of investors and cryptocurrency enthusiasts alike. Stay tuned for updates as the situation continues to unfold.
