FTT Token Gains 12% In Last 2 Weeks During Sam Bankman-Fried, FTX Trial: Here's Why

While former FTX chief Sam Bankman-Fried was on trial, the native token he created saw a two-week gain of 12%.

The cryptocurrency currently stands at $1.18 at the time of writing, with a 24-hour trading volume of $32 million.

What Happened: According to Fortune, speculators are hopeful that the FTT coin will be used in some new version of the exchange now that the Bankman-Fried case has essentially wrapped.

The company’s current caretaker CEO, John J. Ray III, could choose to relaunch the exchange — an FTX 2.0 — and push the FTT token price higher.

Also Read: The True Cost Of The FTX Collapse - How Much Did Sam Bankman-Fried Really Make?

Mark Connors, head of research at 3iQ, told the publication that in traditional markets, speculators gamble on bankrupt stocks in hopes of a significant profit. Although, existing bankruptcy law can be tricky when it comes to treating crypto-custodial assets.

If speculators were expecting the verdict to be in favor of Bankman-Fried, it would have pushed the FTT token price even higher.

Background: When the FTX exchange collapsed, its token FTT saw a significant drop of 95% in last year's trading.

FTT was used mainly as a payment source for trading fees. It also gave holders exclusive benefits, including staking rewards and discounts. However, it lost utility post-FTX bankruptcy.

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Prosecutors in the Bankman-Fried trial claimed that the FTT token was only used to manipulate the balance sheet of the crypto exchange, FTX, and trading firm, Alameda Research.

Read More: Bankman-Fried's Father Paid Legal Bills With Alameda Research Money Gifted To Him: Report

In March 2023, the FTT token saw a significant surge of 38% despite the exchange’ ongoing bankruptcy and legal proceedings. Since mid-October 2023, the FTT market cap expanded around 27% to more than $417 million as of Thursday, Fortune reported. This is compared to $9.6 billion in September 2021.

Benzinga’s Future Of Digital Assets Event in New York is scheduled on Nov.14. Attend and learn more about the FTX exchange and its collapse. The gathering is seen as pivotal for the digital assets community. The event will spotlight the latest trends, innovations, and challenges in the digital asset realm.

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