Godfrey Benjamin
FTX Token jumps 42% in response to Binance news, but will it last?
FTX Token (FTT), the native cryptocurrency of the bankrupt FTX Derivatives Exchange, is on a bullish rampage today, a move that has gotten many in the industry speculating on the next big things to watch. Per CoinMarketCap’s data, the token is up 42.18% to $4.26, extending its gains since the start of the month.
FTT is now up by more than 304% over the past month, and the woeful showing in the trailing seven-day period has also been erased. The plausible reason behind this resurgence is a key factor that can determine whether or not it can stand the test of time.
As a key competitor to Binance Coin (BNB), investors appear to be favoring FTT following the escalated regulatory crackdown Binance and its founder Changpeng “CZ” Zhao have faced lately. The exchange has had to agree to a $4.3 billion settlement with the United States Department of Justice (DoJ) as CZ has also stepped down from his role as the company’s CEO.
These Binance woes mimic, but not in exact terms, the challenges FTX faced last November that led to its eventual collapse. The uncertainty of Binance’s future and the clearer path for FTX have positioned FTT in a positive light among both retail and institutional investors.
FTT track records
Despite its limited utility at the moment, the assumption that the future is bright with the likely launch of FTX 2.0 has largely been a key driver of FTT’s growth in the past few months.
For a coin that fell close to 90% when FTX imploded, it has jumped by more than 232% in the past year and attained its year-to-date (YTD) high price of $4.3 earlier this month. What this implies is that FTT was on an ambitious recovery journey prior to the Binance saga and, as such, its potentially bullish future performance appears anchored in its own merits.
