Connect with us
Active Currencies 12855
Market Cap $2,081,873,962,231.90
Bitcoin Share 48.84%
24h Market Cap Change $1.29

FTT crashes 37% in 7 days: Is it finally curtains for FTX?

2min Read

It was likely that FTX could liquidate FTT to repay customers.

FTT stumbles 37% in 7 days: Is finally curtains down for FTX?

Share this article



  • FTT tumbled 37% over the last week.
  • FTT’s inflows to exchanges spiked dramatically in recent days.

The hopes of a resurgence started to wane for FTX [FTT], amid reports of the tainted exchange scrapping plans to restart its operations.

Is this the end?

The mostly irrelevant cryptocurrency tumbled 37% over the last week, AMBCrypto noticed using CoinMarketCap’s data.

The latest slump exacerbated FTT’s woes, with its market valuation at press time nearly 1/6th of what it was in the days before the collapse of FTX.

Source: CoinMarketCap

FTT token was at the center of the sensational collapse in the fall of 2022 which paralyzed the entire crypto market.

The fact that its sister company Alameda Research’s balance sheet was stacked with native FTT tokens raised concerns over its financial health.


A bank run ensued as customers rushed to pull their funds out of the platform, eventually resulting in FTX’s bankruptcy. Since then, FTT has no real use cases, and its market sentiment has been severely dented.

However, a ray of light came in the latter period of 2023 when FTX started to explore various avenues to revive the exchange, as per a report by Bloomberg. FTT’s value jumped fourfold on these developments.

But the excitement fizzled out when an attorney representing FTX said that negotiations with potential bidders and investors failed, leading them to abandon all revival plans.

Instead, the focus would be on liquidating its assets to repay the customers who lost their deposits during FTX’s downfall.

This event dampened the spirits of FTT proponents, who were hoping for a turnaround. It was likely that the FTX could liquidate FTT to pay to the victims, leaving little hope for the future.


Is your portfolio green? Check out the FTT Profit Calculator


FTT holders bid goodbye

As the news spread, FTT’s inflows to exchanges spiked, according to AMBCrypto’s analysis of Santiment’s data. It was evident that disappointed holders were liquidating their holdings and exiting the market.

Source: Santiment

The Weighted Sentiment also plunged lower into negative territory, deepening the market’s pessimistic view of the token.


Share

Aniket is a full-time journalist at AMB Crypto. With experience in news publishing and content management, he is now increasingly tangled up in the web of cryptocurrencies and blockchains. His focus lies on the intersection between cryptos and traditional finance. He prefers DC over Marvel, cats over dogs and Hyderabadi Biryani over Kolkata Biryani.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.