The native token of the FTX ecosystem, FTT, had a significant increase of 180% in value over the course of the previous week, positioning itself as one of the leading performers in the market. The observed surge, as noted by Kaiko, a blockchain analytics platform, may be attributed mostly to remarks made by the authoritative head of the United States Securities and Exchange Commission (SEC), suggesting the potential for the relaunch of FTX 2.0.
The stock price of #ftt is seeing a significant increase due to optimistic expectations around the potential relaunch of FTX.
According to a post made by Kaiko on November 14, it was observed that the trading volume of connected FTT (FTX's native token) had a significant increase, which may indicate the acquisition of assets by traders and those who have faith in #ftx . The trading volume of FTT, when considering spot rates and its performance on Binance, a prominent cryptocurrency exchange, continues to stay high, comparable to levels observed in November 2022.
In November 2022, FTX, under the leadership of Sam Bankman-Fried, initiated the process of seeking Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware.
Prior to the initiation of bankruptcy proceedings, the FTT token had many roles inside the FTX ecosystem, serving as a governance token and granting users access. However, in early November, the value of FTT experienced a significant decline due to claims of misappropriation of user funds by the exchange. On November 8, a substantial decline occurred, resulting in a 90% decrease in the value of FTT. This decline caused the coin's price to plummet from about $22 to a low point of $2.
The adherence to legal requirements has utmost importance, as emphasized by the Chairperson of the Securities and Exchange Commission (SEC).
FTX may potentially have more advantages in the upcoming period if there is a substantiated announcement on the launching of FTX 2.0, in light of the recent remarks made by Gary Gensler. According to Gensler's statement to CNBC, the potential revival of FTX might be realized provided the next leadership demonstrates a comprehensive understanding of the prevailing legal framework.
The remarks made by the chairman of the Securities and Exchange Commission (SEC) come in response to conjecture about the potential involvement of Tom Farley, the former president of the New York Stock Exchange (NYSE), as one of the three prospective purchasers of FTX.
If Tom or any other individual expressed a desire to pursue a career in this particular domain, I would strongly advise adhering to legal frameworks and regulations. Establishing trust with investors and ensuring compliance with disclosure requirements are crucial aspects to consider. It is important to avoid any conflicts of interest, such as engaging in trading activities that may be detrimental to your consumers. Alternatively, utilizing their cryptographic assets for one's own objectives.
In early November, a jury rendered a verdict of conviction for Sam Bankman-Fried, the former Chief Executive Officer of FTX, on all criminal accusations brought against him, which encompassed wire fraud and money laundering. Bankman-Fried is scheduled to undergo sentence proceedings in the month of March in the year 2024.
