News - Why does the FTX token keep rising?

By Ted Maas

Why does the FTX token keep rising?

FTX

Almost no other coin has risen as much as FTT this year. This while the cryptocurrency imploded a year ago. What are the reasons for the rally?

The FTX token named FTT is far from dead. The cryptocurrency from the bankrupt exchange is currently experiencing a second spring. On the last trading day alone, FTT recorded a massive 40 percent increase. But how to explain the rally of a token that collapsed a year ago? Two factors stand out.

Possible comeback FTX fuels FTT

FTT is making a comeback. Since the beginning of the year, the token has posted 400 percent growth, including 30 in the past week alone. The cryptocurrency currently stands at €4.27 euros. The price has been boosted by rumors of a reopening of FTX. Sam Bankman-Fried's exchange crashed into bankruptcy a year ago. Since then, an experienced receiver has been appointed to help the crypto company get back on its feet and raise money to pay out duped customers. Three candidates are currently being discussed.

Back then, investors saved trading fees when they paid for cryptocurrencies with FTT. Whether the token will perform a similar function again is currently under discussion. However, no final decision has been made yet.

FTT instead of BNB?

At the same time, news about Binance seems to be fueling the FTT. Last night, the US Attorney's Office and the world's largest crypto exchange reached agreement on a deal. Binance will pay a fine totaling USD 4.3 billion and turn its back on the U.S. market. Managing Director Changpeng Zhao must leave and could face a prison sentence. In exchange, the Justice Department and the CFTC are staking their proceedings against the company.

It is the highest fine ever imposed on a crypto company. Binance will likely be able to make the payment without any problems. It is difficult to say how severe the financial impact on the exchange will be because, as a private company, Binance does not have to publish recurring financial reports. However, massive layoffs in July raised doubts about the company's financial health. Overall, the news had a negative impact on the price of BNB, Binance's own token. The currency has fallen nearly 10 percent in the past 24 hours. The circumstances seem to play into FTT's hands. According to the analysis platform Santiment, some investors have already traded their BNB for the FTX token.

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