At the last 7-day mark ending this Monday, the price of the FTT token of the bankrupt FTX exchange experiences a sharp rise. Why does the currency of a defunct firm generate interest among investors? The reason for this is the platform’s return of funds to creditors.
However, the rise of the currency should be assumed with caution, since all kinds of false rumors were spread. For example, it was said that there was a repayment plan that consisted of $16 billion. This set of facts leads to the inevitable conclusion that volatility will be the next stage for the token.
In fact, a few hours ago, the currency entered a sharp correction phase that is reflected in -21% in 24 hours, according to CoinMarketCap. As expected, the spread of false information led to a large number of traders opening short positions.
On the other hand, there are also notable complaints from exchange users, who report that they only receive a small part of their funds. Thus, some complain that they only received back a cap of 25% of their balances on the platform.
FTX Token (FTT) corrects after several hours of bullish rally. Source: CoinMarketCap
FTX Token (FTT) will return to the point before the current rise
Considering the reality of the FTX exchange, it can be said that there is little hope that the FTT token will remain on a positive streak for long. The current rally is a purely speculative rise and the currency will soon collapse. This is because it is a token without any type of support and no underlying project.
FTT can now be considered a kind of memecoin that was left as a castaway after the collapse of FTX and Alameda. Consequently, the level of speculation and risk of losses is one of the largest, even by meme coin market standards.
At the time of writing, the price of the token is $2 per unit. Now that most of the doubts are cleared up, investors who entered the early stages of this recent rally would be ready to capitalize on their gains.
FTT is the token of the FTX exchange, which went bankrupt in 2022 as a result of the mismanagement of its board. The platform was run by businessman Sam Bankman-Fried, who is now in prison for numerous federal crimes. The fall of FTX led the crypto market to a dramatic bearish situation with million-dollar losses.
From that moment on, the FTT token remained like a zombie currency and some investors with high risk tolerance prevented it from going to zero. With some frequency, the currency experiences some rises that generate favorable returns for these high-risk investors.
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