FTT, the native token of the FTX ecosystem, saw a significant rally of 180% last week, making it one of the most improved performers in the market. Kaiko, a blockchain analytics platform, pinpointed that this rally was largely due to comments made by the United States Securities and Exchange Commission (SEC) leader, suggesting that the possibility of FTX 2.0 relaunch was open.
### FTT Soaring On Hopes Of FTX Relaunching
Kaiko made note that trading volume for FTT also saw a considerable surge, which signals potential accumulation by traders who still believe in FTX. At current levels, FTT trading volume on Binance, one of the leading cryptocurrency exchanges, remains notably high, comparable to levels seen in November 2022.
FTX, led by Sam Bankman-Fried, had filed for Chapter 11 bankruptcy protection in November 2022 at the United States Bankruptcy Court for the District of Delaware.
Before the bankruptcy filing, FTT, which had various use cases in the FTX ecosystem, dropped significantly amid allegations of misappropriation of user funds. The coin plummeted by 90% on November 8, dropping from $22 to as low as $2.
FTT is now trading at around $3.22, marking a remarkable 232% increase from its October 2023 lows, as seen in the daily chart. As fundamental events around FTX continue to unfold, FTT’s trading volume has been showing a steady rise as well.
### Compliance With The Law Is Crucial: SEC Chairperson
Gary Gensler, the SEC Chairperson, suggested last week that there could be more gains for FTX in the coming days should there be concrete positive news about an FTX 2.0 relaunch. Gensler mentioned in an interview with CNBC that the re-launch of FTX could be possible if the leadership in charge understands and complies with existing laws.
He added that it is crucial for leaders to build trust and ensure proper disclosures to investors. These comments follow speculations that Tom Farley, a former New York Stock Exchange (NYSE) president, is among the three bidders interested in acquiring FTX.
In an interview, Gensler emphasized, “If Tom or anybody else wanted to be in this field, I would say, ‘Do it within the law. Build investors’ trust in what you’re doing and ensure that you’re doing the proper disclosures — and also that you’re not commingling all these functions, trading against your customers. Or using their crypto assets for your purposes.”
Earlier in November, Sam Bankman-Fried, the former CEO of FTX, was found guilty of criminal charges, including wiring fraud and money laundering. He is set for sentencing in March 2024.
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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