Home>BLOCKCHAIN>FTX’s FTT token rallies 30% — Binance impact or FTX 2.0 reopening?
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FTX’s FTT token rallies 30% — Binance impact or FTX 2.0 reopening?

23 Nov 2023
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Amid market uncertainties round Changpeng “CZ” Zhao’s departure as Binance CEO, the in-house cryptocurrency of the FTX crypto change, FTX Token (FTT), witnessed a momentary bull run. FTT surged in market worth by greater than 55% up to now 48 hours and is at present buying and selling at $4.63, reflecting a 30% enhance from $3.56.

FTX’s native token is experiencing one other surge following Binance’s $4.3 billion settlement with the United States Department of Justice, according to on-chain analyst agency Santiment. This goes in opposition to expectations that FTT would fall in value as a result of it is the brand new token representing the FTX crypto change’s relaunch (FTX 2.0). The token’s worth seems to have been boosted, with the ten largest wallets accumulating $12.8 million in cash in 19 days.

In response to Santiment, FTT has recorded 337% progress on the month-to-month chart, with a good portion of those good points occurring within the final ten days. Notably, the highest 10 whale wallets have been closely accumulating FTT throughout this era, resulting in a 255% enhance in FTT’s market worth in comparison with Bitcoin.

FTX’s current strategy of liquidating belongings and transferring substantial funds throughout completely different exchanges has triggered heightened exercise within the cryptocurrency market. In a major transfer, FTX and its affiliate, Alameda Analysis, executed a exceptional switch of belongings totaling $474 million.

Nevertheless, this transfer may generate a depreciating impact on the FTT value. Knowledge from Cointelegraph Markets Professional reveals an honest probability to ascertain a value backside at present lows for the reason that market is now digesting the dangerous information.

This transfer is a part of a broader effort to handle the change’s monetary obligations and doubtlessly pave the way in which for a brand new section referred to as “FTX 2.0.”  The FTX group plans to restart the exchange by the second quarter of 2024. Notably, this rise in FTT value happens within the context of Binance’s $4.3 billion settlement with the United States Department of Justice.

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In distinction, Binance’s BNB token declined, experiencing a 13% drop to $235. Knowledge from DefiLlama showed that Binance’s 24-hour outflows topped $1 billion as of three:30 pm, Hong Kong time on Nov. 22. The change’s internet outflows over seven days amounted to $703.1 million.

In his introductory post on “X” (formerly Twitter) as Binance’s new CEO, Richard Teng, who changed CZ, mentioned that “the inspiration on which Binance stands as we speak is stronger than ever.” Teng mentioned he would initially give attention to three elements of the enterprise: reinstating investor confidence, collaboration with regulators and driving Web3 adoption.

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