FTX Token Soars 32% as New CEO Mulls Restarting Exchange After Bank Run

J. ray iii, the new ceo of ftx, caused the token to jump 32% in a day after he announced his plans to possibly restart the exchange. ftx collapsed in november due to a bank run on the exchange, leading to u.s. prosecutors charging bankman-fried with eight financial crimes related to the collapse. ftt tokens were issued and used to acquire assets and firms, such as blockfolio, which was nearly purchased entirely with ftt tokens.

Ftt token rose from its all-time low of $0.82 on december 30 to $2.37 today, according to coingecko data. ray is still trying to uncover and retrieve ftx assets and has tasked a group with exploring the possibility of restarting the international arm of the exchange. last week, ftx’s creditor committee attorneys said releasing the names of the exchange’s 9 million customers could damage a “potential reboot.”

Eventually froze withdrawals and filed for bankruptcy, with the former ceo now under house arrest and awaiting a trial scheduled for october. despite ftx’s complete collapse, the token has never quite reached zero. it’s unclear why traders are still buying and selling a token for a defunct exchange, but it’s possible traders see an opportunity to profit from the token’s wild volatility or are speculating on the possibility that ftt could regain its utility on the ftx exchange in the future.


By Evey Lovelace

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