๐๐๐ย #FTT Crashes 30% while#FTX Relaunch the faded hopes: is the dream over?
The fading hopes of a revived FTX exchange sparked a major selloff in its native token, $FTT, with the cryptocurrency falling more than 30% last week, according to Kaiko data. This sharp decline erased much of the recent gains generated by speculation surrounding a potential FTX comeback.
Reports that the bankrupt exchange, once run by Sam Bankman-Fried, would likely not resume trading, contributed to the worrying decline in FTT's value. Despite the glimmer of hope offered to FTX customers during a recent court hearing, during which exchange representatives discussed plans to fully refund users, prospects for recovery appear bleak.
Notably, the repayment process would be based on the value of assets held during FTX's bankruptcy, which occurred during a period of downturn in the crypto market. This context adds complexity to the repayment scenario, as asset values โโwere significantly lower at the time of the stock market collapse.
Following a court hearing in late January, FTX attorney Andrew Dietderich said in a now-deleted YouTube video that the exchange would not pursue a relaunch due to the absence of potential buyers. Therefore, the exchange is exploring options for creditors to seek approval from investors seeking repayment.
This development raises concerns among the many applicants affected by the exchange's new direction, as they must provide substantial evidence of holding assets in FTX before its collapse.
The recent TTF price decline presents a sad reality for investors, reversing the gains of the 2023 rally fueled by hopes of FTX 2.0. FTT's usefulness 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
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