FTX’s native token, FTT, experienced an impressive surge of almost 90% within a 24-hour period, reaching a nine-month high of $2.33. This price rally was triggered by the suggestion of SEC Chair, Gary Gensler, who hinted that the insolvent exchange could potentially be revived under the right leadership. Gensler emphasized the importance of operating within legal boundaries and building trust with investors by ensuring proper disclosures and avoiding unethical practices like commingling functions or using customer assets for personal gain. The statement from the SEC Chair has sparked renewed hope for the future of FTX.
Reports have revealed that Tom Farley, former president of the New York Stock Exchange, is one of three potential bidders for FTX during the ongoing bankruptcy process. Farley currently serves as CEO of Bullish, a cryptocurrency exchange launched in 2021, and enjoys support from prominent figures like Block.one, Peter Thiel, and Alan Howard. Other contenders in the running to acquire FTX’s remains include Proof Group, a cryptocurrency venture capital firm, and fintech startup Figure Technologies. The impending arrival of a buyer marks a significant step in the efforts to revive FTX’s operations after the expected exit from bankruptcy in 2024.
In light of recent allegations involving mishandled customer funds under the previous leadership of Sam Bankman-Fried, the acquisition of FTX will undoubtedly face rigorous scrutiny from the SEC. Sam Bankman-Fried himself now faces a potential prison sentence of up to 115 years following a unanimous guilty verdict by a U.S. jury. Gary Gensler’s comments indicate that any potential buyer must be prepared for strict regulatory oversight, ensuring compliance with legal requirements and demonstrating a commitment to the proper handling of customer assets. The SEC’s involvement adds an additional layer of complexity to the acquisition process.
Gensler’s positive remarks regarding the potential revival of FTX had an immediate effect on the price of FTT, driving it to spike by around 90% to $2.26969. This rally resulted in a substantial increase of over $300 million in the market capitalization of FTT, bolstering the value of the struggling token. Currently, FTT holds a market cap of $746.49 million. CoinMarketCap data also reveals a significant surge in trading volume during this period, with an increase of 940% to $230 million. The positive news surrounding FTX’s potential revival continues to have a profound impact on the token’s performance.
This recent surge in FTT’s value is not the first time news of a potential restart has influenced the token’s price. Earlier in the year, there was a 12% price increase when court filings indicated that FTX CEO John J. Ray III was exploring plans for a restart of the failed exchange. As the acquisition process unfolds, market participants will likely closely monitor any new developments or hints about FTX’s future. The fate of the insolvent exchange now lies in the hands of prospective buyers and the necessary regulatory approval processes.
FTX’s native token, FTT, has experienced significant price growth due to the suggestion of a revival for the insolvent exchange by SEC Chair Gary Gensler. The emergence of potential buyers and strict regulatory scrutiny adds complexity to the acquisition process. However, the recent surge in FTT’s value and trading volume indicates a renewed interest and optimism surrounding FTX’s future. As the bankruptcy process nears its conclusion, the crypto community eagerly anticipates the revival and potential transformation of FTX.