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As the FTX bankruptcy case and fraud charges against co-founder Sam Bankman-Fried continue to unfold, the value of the exchange’s token, FTX Token ($FTT), has seen significant growth. Since Jan. 9, 2023, $FTT has risen 28.42% and currently sits above the $1 range, following a dip below that threshold.
$FTT Token Jumps 28% Rising Above the $1 Threshold
The value of FTX’s exchange token, $FTT, has seen a marked increase over the past two days. On Jan. 9, 2023, the coin reached $1.36 per unit. While some of those gains have been lost, $FTT is currently holding above the $1 range at $1.22 per coin as of 9:30 a.m. Eastern Time on Jan. 11, 2023. The reason for this surge in value is uncertain, as $FTT’s tokenomics are tied to the now-defunct FTX exchange and its potential future growth.
$FTT’s levels of ownership concentration are extremely high, with a single address controlling 59.55% of the entire $FTT supply. Additionally, an unknown hacker holds 45.85 million $FTT tokens, comprising 13.94% of the circulating supply. Another unknown address holds 10 million $FTT, or 3.04% of the total supply. $FTT’s value fell below the $1 range on Dec. 19, 2022, and remained below that threshold until a spike on Jan. 9, 2023.
The most active crypto exchanges trading $FTT currently include Binance, Mexc Global, Kucoin, Gate.io, and Sushiswap. On Sushiswap alone, there is roughly $104,496 in $FTT trades paired against wrapped ethereum (WETH). The overall global trading volume for $FTT is approximately $23.81 million among all exchanges worldwide. Since the $FTT token’s all-time low 12 days ago on Dec. 30, 2022, when it reached $0.827 per unit, it has risen 45.8%. However, it remains 98.6% down from its all-time high of $84.18 per unit reached on Sept. 09, 2021.
With Sam Bankman-Fried (SBF) facing charges of financial fraud and FTX filing for bankruptcy, the future of $FTT is uncertain. Despite this, the token has not experienced the same sharp decline as Terra’s LUNA did last May. $FTT’s tokenomics were closely tied to those of FTX, including providing traders with reduced fees on the now-defunct crypto exchange, and now the coin’s tokenomics are in disarray.
$FTT is among many crypto assets that have managed to survive despite a lack of development or clear tokenomics. It has now become something for traders to speculate on as a hobby, and in light of the ongoing scandal involving SBF and FTX, it is difficult to view it seriously.