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FTX Token skyrockets over 40% as Binance faces legal battle

source-logo  finbold.com 22 November 2023 13:20, UTC

FTX Token (FTT) has posted impressive numbers over the past 30 days, increasing by 296.17% from its price of $1.05 on October 22.

In the past 24 hours, FTT, the native token of the disgraced FTX exchange, experienced a huge surge in value, amounting to 45%, most likely contributed by the recent developments surrounding its rival crypto exchange platform, Binance.

At the time of press, FTT was trading at $4.26, representing an impressive 43.24% positive increase in the 24-hour period, which followed a 21.08% increase over the 7-day period.

This value increase comes from solid indicators in the same period, where it has outperformed 89% of the top 100 crypto assets in a year. Also, FTT has had 18 green days in the previous 30 days and is trading above the 200-day moving average simultaneously.

However, it is still -95% down in value from its all-time high, which at one point amounted to $84.

Traders swap BNB for FTT

This value increase is credited with the positive sentiment regarding this digital asset. At the same time, its upward momentum suggests that traders are exchanging their Binance Coin (BNB) for FTT following the escalation of regulatory issues for Binance.

In response to Binance discontinuing its US operations, some funds seem to be shifting into FTX Token, as per Santiment post on X on November 22.

The behavior analysis platform noted: “Although many see the #Binance news as the main culprit for one of the biggest retraces of the year, the fact of the matter is that #altcoins had already seen shrinking market caps. Interestingly, it appears some traders are swapping their $BNB for @FTX_Official’s $FTT.”

Developments contributing to FTT’s value surge

Despite its troubled past, which saw the FTX cryptocurrency derivatives exchange filing for bankruptcy in November of 2022 and recent legal verdicts against its owner, Sam Bankman-Fried, FTT seems to be rallying its price recently.

Another development that has spelled gains for FTT is the legal proceedings against its rival’s (Binance) now-former CEO Changpeng Zhao, who announced his resignation yesterday.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.