FTX’s Exchange Token FTT Sees Mysterious Pump Amid Bankruptcy Case, SBF Fraud Charges

As the FTX bankruptcy case and fraud charges against co-founder Sam Bankman-Fried continue to unfold, the value of the exchange’s token, FTX Token (FTT), has seen significant growth. Since Jan. 9, 2023, FTT has risen 28.42% and currently sits above the $1 range, following a dip below that threshold.

FTT Token Jumps 28% Rising Above the $1 Threshold

The value of FTX’s exchange token, FTT, has seen a marked increase over the past two days. On Jan. 9, 2023, the coin reached $1.36 per unit. While some of those gains have been lost, FTT is currently holding above the $1 range at $1.22 per coin as of 9:30 a.m. Eastern Time on Jan. 11, 2023. The reason for this surge in value is uncertain, as FTT’s tokenomics are tied to the now-defunct FTX exchange and its potential future growth.

FTX's Exchange Token FTT Sees Mysterious Pump Amid Bankruptcy Case, SBF Fraud ChargesFTT/USD chart on Jan. 11, 2023.

FTT’s levels of ownership concentration are extremely high, with a single address controlling 59.55% of the entire FTT supply. Additionally, an unknown hacker holds 45.85 million FTT tokens, comprising 13.94% of the circulating supply. Another unknown address holds 10 million FTT, or 3.04% of the total supply. FTT’s value fell below the $1 range on Dec. 19, 2022, and remained below that threshold until a spike on Jan. 9, 2023.

The most active crypto exchanges trading FTT currently include Binance, Mexc Global, Kucoin, Gate.io, and Sushiswap. On Sushiswap alone, there is roughly $104,496 in FTT trades paired against wrapped ethereum (WETH). The overall global trading volume for FTT is approximately $23.81 million among all exchanges worldwide. Since the FTT token’s all-time low 12 days ago on Dec. 30, 2022, when it reached $0.827 per unit, it has risen 45.8%. However, it remains 98.6% down from its all-time high of $84.18 per unit reached on Sept. 09, 2021.

With Sam Bankman-Fried (SBF) facing charges of financial fraud and FTX filing for bankruptcy, the future of FTT is uncertain. Despite this, the token has not experienced the same sharp decline as Terra’s LUNA did last May. FTT’s tokenomics were closely tied to those of FTX, including providing traders with reduced fees on the now-defunct crypto exchange, and now the coin’s tokenomics are in disarray.

FTT is among many crypto assets that have managed to survive despite a lack of development or clear tokenomics. It has now become something for traders to speculate on as a hobby, and in light of the ongoing scandal involving SBF and FTX, it is difficult to view it seriously.

Tags in this story
alameda, Alameda Research, Altcoins, Binance, Concentration, dead coin, disarray, Exchange Token, Fork, FTT, FTT Below $1, FTT Crash, FTT Market Crash, FTT Price Dump, FTT Pump, FTT slides, FTT Supply, FTT whales, ftx, FTX Bankruptcy, FTX collapse, FTX Token, FTX’s collapse, hobby, IEO, KuCoin, LUNA, Sam Bankman-Fried, Sam Bankman-Fried (SBF), sbf, speculate, Sushiswap, Terra collapse, tokenomics, toy coin, Traders, whale concentration, Wrapped ethereum (WETH)

What do you think about FTT’s market performance amid FTX’s bankruptcy case and the fraud charges against FTX’s co-founder Sam Bankman-Fried? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer

Comments are closed.