The FTX token (FTT) of Sam Bankman-Fried’s exchange platform that fell in November is experiencing a true renaissance. From the beginning of 2023, the token has already risen by more than 120 percent. Is it the cautious optimism surrounding a possible restart of FTX that is doing the token good? Analysis company Kaiko took a closer look.
$FTT is up more than 120% since the start of 2023.
What gives?
Let’s take a look at FTT order books to try and understand the zombie-coin’s recent gains ⬇️
🧵1/7 pic.twitter.com/pmrXhIUpQ8
— Kaiko (@KaikoData) January 23, 2023
Restart of FTX
Not long after FTX’s troubles began in November, the exchange platform’s token was dead as a doornail. The price plummeted and no one expected the token to make a comeback. That suddenly changed a few weeks ago and that seems to have to do with statements by the new CEO.
He indicates that he has good hopes about a potential restart of FTX. Slowly but surely it becomes clear that there is a considerable amount of assets within the company and FTX may collect enough from the sales of other departments to pay off all creditors.
If that turns out to be possible, there is a chance that FTX will open its doors again soon. That is something no one expected until recently. Of course, it is still anything but clear to what extent the exchange token will play a role on the platform in the future.
Trading volume remains low
A restart of FTX is of course still anything but certain. In that sense, the price increase is mainly speculative. In the end, we will only have to see what will be in a few months or even years when the smoke has cleared.
Meanwhile, the trading volume on FTX’s token remains quite low. Still, the increase is supported by some real buyers, reports Kaiko. The low liquidity is likely to make the price rise more easily and subsequently attract traders who want to sell their FTT.