๐๐๐ #FTT Crashes 30% As #FTX Relaunch Hopes Fade: Is the Dream Over?
The demise of hopes for a revived FTX exchange has sparked a significant sell-off of its native token, $FTT , with the cryptocurrency plummeting over 30% last week, according to data from Kaiko. This sharp decline has erased much of the recent gains driven by speculation surrounding a potential FTX comeback.
Reports indicating that the bankrupt exchange, once helmed by Sam Bankman-Fried, is unlikely to resume operations have contributed to the concerning drop in FTT's value. Despite a ray of hope for FTX customers provided during a recent court hearing, where the exchange's representatives mentioned plans for full repayment to users, the prospect of revival seems bleak.
Notably, the repayment process would be based on the value of assets held during FTX's bankruptcy, which occurred during a period of crypto market downturn. This context adds complexity to the repayment scenario, as asset values were significantly lower at the time of the exchange's collapse.
Following a court hearing in late January, FTX lawyer Andrew Dietderich conveyed in a now-deleted YouTube video that the exchange would not pursue a relaunch due to the absence of potential buyers. Consequently, the exchange is exploring options to allow creditors to seek approvals from investors seeking reimbursements.
This development raises concerns for the numerous claimants impacted by the exchange's new direction, as they must provide substantial evidence of holding assets in FTX before its collapse.
The recent decline in FTT prices marks a sobering reality for investors, reversing gains from 2023's recovery fueled by FTX 2.0 hopes. FTT's utility in the FTX ecosystem is now under scrutiny, with prices hovering around $1.7, down from previous highs. The charts show a reversal, with $0.95 seen as a critical support level.
Source - newsbtc.com