FTX Revival Sparks FTT Surge: 90% Rally on SEC Caution
U.S. Securities and Exchange Commission (SEC) chairman Gary Gensle emphasized the importance of compliance with the law for anyone venturing into the cryptocurrency space, particularly in light of efforts to revive FTX.
These comments led to a significant 90% surge for the price of FTX’s native token – FTT token.
When asked about the potential interest of Tom Farley, the former president of the New York Stock Exchange, in acquiring FTX, Gensler advised that anyone considering such a move should operate strictly within legal boundaries.
He stressed the need to establish trust with investors, maintain transparent disclosures, and avoid conflicting interests, such as trading against customers or misusing their crypto assets.
Amid reports of multiple parties vying to take control of FTX after its founder, Sam Bankman-Fried, faced a guilty verdict on seven criminal charges last week, there’s a speculative upsurge in anticipation of FTX 2.0’s potential approval.
However, it remains uncertain whether a native token like FTT would be utilized in a relaunched exchange.
FTT’s current value stands at a seven-month peak of $2.30, with trading volume surpassing $300 million in the last 24 hours, according to CoinMarketCap.
Despite the positive outlook for a potential relaunch, various institutional traders expressed concerns earlier in the year regarding the platform’s performance issues, including latency and other operational challenges.