FTT (the native token of the FTX exchange) usually faces major negative events, such as founder issues, team disbandment risks, exchange uncertainty, and announcements by other large trading platforms such as Binance that related financial products will be removed from the shelves. Its market price will be under significant pressure, and investors may expect that its value will continue to decline, or even face the risk of a "cliff fall" or "crash." However, despite these unfavorable factors, the price of FTT may still rebound. We boldly speculate that possible reasons include the following aspects:
1. Changes in market sentiment:
Short-term speculation: The cryptocurrency market is often highly volatile and speculative. Even under the shadow of negative news, short-term investors or traders may still make short-term operations based on technical analysis, market sentiment reversal, short-term supply and demand changes, etc., resulting in a temporary rebound in prices. This may be because some investors believe that the market has overreacted and prices have bottomed out, so they buy at low prices, expecting a rebound in the short term and quick profits.
2. Industry or company updates:
Positive progress: Although FTX is facing difficulties, if there are positive company or industry dynamics in the future, such as FTX announcing a restructuring plan, finding new strategic investors, or the regulatory environment showing signs of being conducive to FTX resuming operations, market confidence may be restored to a certain extent, driving a price rebound.
Market misunderstanding or rumor clarification: Sometimes the market may over-interpret or misunderstand certain negative information. When the true situation is clarified or the uncertainty about the future of FTT is alleviated, investors may re-evaluate its value and push up the price.
3. Market linkage effect:
Overall industry pick-up: If the entire cryptocurrency market experiences a general rally, especially when market leaders (e.g., Bitcoin, Ethereum) show strong momentum, an overall warming in market sentiment may drive growth, including FTT of other tokens rose in price even though the fundamentals of those tokens themselves did not improve significantly.
Competitor dynamics: If the market interprets the previously mentioned events such as the resignation of the Binance CEO as an indirect positive for the position of FTT or its competitors, it may lead to a reallocation of funds, with some investors choosing to purchase FTT as an alternative investment, thereby driving up its price.
4. Market manipulation or “pump and dump”:
Although uncommon and usually illegal, in some cases, market manipulators may use false information, concentrated capital advantages, etc. to artificially create price rebounds, with the aim of attracting uninformed investors to follow suit and then sell at high prices to cash out. This behavior may cause FTT prices to fluctuate violently in a short period of time, forming a phenomenon that appears to be a "rebound".
It should be noted that the above explanation only provides some possible reasons why FTT can still rebound when facing unfavorable situations such as delisting, and does not mean that the actual situation will definitely develop in this way. The complexity and uncertainty of the cryptocurrency market requires investors to fully consider various information sources, risk tolerance and personal investment strategies when making decisions. In addition, the specific reasons for the rebound need to be combined with specific market news, announcements, data analysis, etc. at the time to make an accurate judgment.
