Is 2024 the year of clearing debts? The German government is selling Bitcoin, Mt. Gox is under pressure... Now FTX is also on the agenda to repay its debts.
FTX plans to repay in October, but this time the repayment will be in fiat currency because FTX's cryptocurrency has been sold out. This move will inject a lot of money into the market, and many investors are expected to flock back into the crypto space, especially considering the strong bull market expectations at the end of the year. Therefore, October will usher in tens of billions of dollars of buying from FTX, which is an overlooked good news. With the repayment of Mt. Gox completed, the market's negative impact will be alleviated, and the injection of FTX funds is expected to drive the cryptocurrency circle to a real bull market outbreak.
Recently, many fans have asked me about the restart of FTX and the creditor issue, especially about the old platform currency FTT. So let’s talk about FTT today.
FTT is the platform currency of FTX. Although FTX has gone bankrupt before, FTT still attracts widespread attention due to creditor issues. If FTX restarts, there will definitely be intervention by the US government, and there are two possible results:
The first method: Rename and resubmit
Many project owners have failed in one project, but do not want to abandon this famous project, so they will choose to change the name and start over, injecting a new story. The most typical example is the old LUNA and the new LUNC.
The second method: abandon FTT and create a new platform coin
In this case, the original ecosystem of FTT will be abandoned, and no on-chain development will be carried out. Instead, a new currency, such as FBB, will be launched, and the subsequent ecosystem will be developed on the new currency. A typical example is OKB and OKT.
Neither of these two situations is good news for FTT. Therefore, there is little hope for FTT to rebound like SOL. After all, SOL is a public chain with a strong ecosystem, while the situation of FTT is much more complicated. But this does not mean that FTT has no value.
First of all, FTX’s restart has not yet been officially launched. If FTX successfully restarts, FTT will usher in a wave of dividends before the first two situations occur.
Secondly, the holdings of FTT by the market makers are very concentrated. After nearly a year and a half of absorbing funds, most of the chips have flowed back to the market makers. The proportion of large holders holding coins is very high. The top ten large holders hold more than 93% of the total circulation, and the top 100 addresses hold more than 98% of the total circulation.
Third, FTX’s strategic position
In the global exchange rankings, only Coinbase is in the top three. If a big bull market breaks out, the United States needs FTX to restart to gain a foothold in the crypto market. FTX can help the United States lay out a larger network. From the trend, FTT is close to its historical low, with only about 30% of space to the new low. However, there is plenty of room for growth above. At present, FTT is at its lowest point in 35 weeks, and after bottoming out last week, it is currently on an upward trend.
In summary, although FTT faces many challenges, it also has potential opportunities and positive factors. Investors need to consider carefully and make wise investment decisions based on market dynamics and risk tolerance.
At present, FTT is in a long consolidation period. For those who are looking forward to restarting, they can consider intervening with small funds at low prices, but they should not use it as the main source of funds because it may bring risks. Although the 4-hour trend today is upward, the overall trend has not been good recently. It has been suppressed by 1.48 for a long time. After being suppressed continuously, it may test the 1 dollar mark. If it continues to consolidate in the next two or three months, the 1 dollar mark is likely to break, and once it breaks, it may continue to fall.
The support level is between $0.95 and $1, and the resistance level is around $1.9, $2.7 and $3.2. The current key area is between $1.45 and $1.48. After the breakthrough, we should pay attention to the positive line reaction, and after the suppression, we need to observe the squat reaction to avoid premature action.
Although FTT has been repeatedly hyped up for a restart, it is important to understand that this is just market hype and does not represent an actual restart. For example, the problems that Mentougou has not been able to solve for many years should make people realize this and not over-fantasize. FTT has the potential to be held in the medium and long term, especially during the explosive period that may be brought about by the restart of FTX hype. Now is the time to make a first position layout.
That’s all for today’s article. We are currently in a bull market, and things are turbulent. We share passwords every day.
