FTT skyrockets as Gary Gensler hints at a possible FTX reboot

• FTT saw a 90% price uptick during the trading session on 9th November.
• The rally came after Gary Gensler commented on the possibility of restarting FTX.

The native token of the now-defunct FTX cryptocurrency exchange, FTT, surged 90% during the intraday day trading session on 9th November. This was after US Securities and Exchange Commission (SEC) Chair Gary Gensler hinted at the possibility of a restart for the exchange.

In an interview with CNBC, Gensler stated that the regulator is open to the idea of a rebooted FTX as long as it is done “within the law.”

During a court hearing in Wilmington, Delaware on the 24th of October, investment banker Kevin Cofsky of Perella Weinberg Partners noted that the bankrupt crypto exchange had received multiple bids from potential buyers.

According to Cofsky, at least three bidders are in the running to buy the assets of the exchange. He added that the company is reviewing the bids and is expected to decide how to proceed by mid-December.

Commenting on what the regulator expects from players within the ecosystem, Gensler added:

“Build the trust of investors in what you’re doing and ensure that you’re doing the proper disclosures — and also that you’re not commingling all these functions, trading against your customers. Or using their crypto assets for your own purposes.”

FTT climbs to a multi-month high

At press time, FTT traded at $2.98. The last time the altcoin exchanged hands at this price level was on 11 November 2022, the day FTX collapsed. 

Source: CoinMarketCap

According to data from Santiment, FTT’s trading volume in the last 24 hours has exceeded $400 million, its daily highest since 12th April.

Source: Santiment

Also, there has been a significant uptick in demand for the alt since Gensler’s interview. Santiment data showed that the daily count of unique addresses involved in FTT transactions increased by over 350% between 8th and 9th November. 

Likewise, new demand for the token increased by 532% during the same period.

Source: Santiment

As expected, key indicators assessed on a 12-hour chart showed that FTT’s spot market has since been marked by significant accumulation

As of this writing, the token’s Relative Strength Index (RSI) and Money Flow Index (MFI) were spotted at overbought highs of 89.16 and 96.08, respectively. At these levels, the token is at a high risk for a potential reversal or correction in its price.

Source: FTT/USDT on TradingView

Regarding how profitable FTT transactions have been since the rally began, the daily ratio of FTT transaction volume in profit to loss was 5.198 at press time, according to Santiment. This meant that for every transaction that returned a loss, 5.198 transactions ended in profit.

Read FTT’s Price Prediction 2023-24

However, FTT’s Market Value to Realized Value (MVRV) ratio remains significantly negative due to the troubles faced by the altcoin since FTX collapsed a year ago. 

At -29.35% at press time, most investors are guaranteed to realize losses on their investment if they sold at the current price. 

Source: Santiment