FTX, the unpopular cryptocurrency exchange, declared bankruptcy on November 11th, 2022, leaving many investors and traders in shock. However, despite the bankruptcy filing and the ongoing investigation on FTX, the exchange’s native token, FTT, has seen a massive surge in its value. As of today (January 16th), the token is trading at $2.55 on Binance, an increase of 170% from its previous value last week ($0.85).
The exact reason for the sudden increase in FTT’s value is not clear, but it may be due to speculation regarding the recovered assets from FTX and fueled by the price increase of Bitcoin. It is speculated, that many traders and investors are buying up the token in the hopes that it will recover its value once the ongoing investigation into FTX’s bankruptcy is completed, and FTX creditors will get their funds back.
The investigation into FTX’s bankruptcy is still ongoing and the details of the case are not yet publicly available. However, it is known that FTX’s founder, Sam Bankfried, and Alameda Research’s CEO, Caroline Ellision, are under investigation for fraud. The investigation is being led by the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The sudden rise in FTX FTT’s value has also raised questions about the overall stability of the cryptocurrency market. With a platform declaring bankruptcy and its token still seeing a significant increase in value, it raises concerns about the transparency and accountability of the market.
FTT token currently has a market cap of $850 million and a 24-hour trading volume of $161 million.