FTX Exchange Won’t Resume Operations
The recent massive sell-off of FTT, the native token of the defunct FTX exchange, indicates that the dream of a revived FTX is no longer a possibility. Reports suggest that the bankrupt exchange, led by Sam Bankman-Fried, is unlikely to resume operations. While there was hope for FTX customers during a court hearing where the exchange claimed it would repay users fully, repayments would be based on the worth of their assets during FTX’s bankruptcy.
However, the collapse of FTX in late 2022 occurred during a bear market phase for crypto assets, with prices plummeting. Bitcoin was trading below $20,000 and dropped even further after FTX’s collapse. The exchange’s lawyer confirmed that there are no plans to relaunch due to the absence of buyers.
Concerns for Claimants and FTT’s Free Fall
Claimants impacted by FTX’s new conditions must provide proof of holding assets before the collapse, which raises concerns about the actual value of their assets. Since November 2023, FTT prices had been steadily recovering by over 300% due to speculation about FTX 2.0 launching. However, with this hope fading, questions arise about FTT’s utility since it played a crucial role in the FTX ecosystem.
Currently, FTT is facing a reality check as its price trend reverses November 2023 gains. Bears are in control, and $0.95 serves as a key support line.
Hot Take: Uncertain Future for FTT and Its Holders
The recent sell-off and news about the unlikelihood of FTX resuming operations have cast uncertainty over the future of FTT and its holders. With no plans for relaunch and concerns about the actual value of assets, FTT’s utility is being questioned. Its price trend has reversed gains from November 2023, and bears remain in control. Holders of FTT face an uncertain road ahead as they navigate through the bankruptcy process and seek repayments based on the worth of their assets during FTX’s collapse.
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