FTX’s Native Token Surges by 80% in Less Than 24 Hours – Here is Why
Cryptocurrency exchange FTX's native token, FTT, surged by almost 80%, reaching a level last seen in January.
During a court hearing on Wednesday, attorneys from Sullivan & Cromwell stated that FTX, a cryptocurrency exchange that experienced a spectacular collapse in November, is considering reopening in the future as it navigates bankruptcy.
One potential option discussed was to allow FTX’s creditors to convert a portion of their holdings into a stake in a reopened exchange. Following the news, the price of FTT skyrocketed.
The lead attorney for FTX, Andy Dietderich, stated that restarting the exchange was one of several potential options being considered, and significant capital would be needed if that path was taken.
Dietderich mentioned an ongoing internal discussion about whether the capital required for restarting FTX should come from the FTX estate’s capital or third-party capital.
He also stated that customers might have the option to receive an interest in the exchange going forward instead of receiving their proceeds in cash from the estate.
The attorneys reported that they had retrieved $7.3 billion in liquid assets from the defunct exchange, an increase from the $1.9 billion figure reported in January. Nevertheless, they mentioned that FTX is still far from an equity distribution.
At the time of writing, FTT is priced at $2.31 with a $280 million trading volume (an increase of 2,250% in the past 24 hours). FTX’s token has a market cap of $785 million and is ranked #210, according to CoinMarketCap.