Altcoin
FTT crashes 37% in 7 days: Is it finally curtains for FTX?
Posted:
| Last updated: April 3rd, 2024
Journalist
- FTT tumbled 37% over the last week.
- FTT’s inflows to exchanges spiked dramatically in recent days.
The hopes of a resurgence started to wane for FTX [FTT], amid reports of the tainted exchange scrapping plans to restart its operations.
Is this the end?
The mostly irrelevant cryptocurrency tumbled 37% over the last week, AMBCrypto noticed using CoinMarketCap’s data.
The latest slump exacerbated FTT’s woes, with its market valuation at press time nearly 1/6th of what it was in the days before the collapse of FTX.
Source: CoinMarketCap
FTT token was at the center of the sensational collapse in the fall of 2022 which paralyzed the entire crypto market.
The fact that its sister company Alameda Research’s balance sheet was stacked with native FTT tokens raised concerns over its financial health.
A bank run ensued as customers rushed to pull their funds out of the platform, eventually resulting in FTX’s bankruptcy. Since then, FTT has no real use cases, and its market sentiment has been severely dented.
However, a ray of light came in the latter period of 2023 when FTX started to explore various avenues to revive the exchange, as per a report by Bloomberg. FTT’s value jumped fourfold on these developments.
But the excitement fizzled out when an attorney representing FTX said that negotiations with potential bidders and investors failed, leading them to abandon all revival plans.
Instead, the focus would be on liquidating its assets to repay the customers who lost their deposits during FTX’s downfall.
This event dampened the spirits of FTT proponents, who were hoping for a turnaround. It was likely that the FTX could liquidate FTT to pay to the victims, leaving little hope for the future.
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FTT holders bid goodbye
As the news spread, FTT’s inflows to exchanges spiked, according to AMBCrypto’s analysis of Santiment’s data. It was evident that disappointed holders were liquidating their holdings and exiting the market.
Source: Santiment
The Weighted Sentiment also plunged lower into negative territory, deepening the market’s pessimistic view of the token.
