Despite the widespread impact of the FTX crypto exchange crisis on the general market, the trading platform’s native token is recording a short-term rally with no apparent trigger. The token’s gains come as different crypto industry players questioned a change in the FTT tokenomics.
In particular, the token has sustained a buying pressure that propelled the FTT’s market capitalization to hit $588.57 million, adding about $109.26 million within 24 hours, according to CoinMarketCap data.
By press time, the FTT token was trading at $1.80, having made gains of about 25% in the last 24 hours. In this line, FTT has emerged as the most trending cryptocurrency.
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It is worth noting that despite the gains, the FTT token at some point plunged over 80% after the extent of the FTX crisis hit the limelight.
FTT’s unscheduled release
Interestingly, FTT is receiving increased attention despite major exchanges withholding their support for the token. In this case, Binance and Huobi blocked deposits of FTT hours after almost $400 million worth of the token was released with no explanation.
According to Binance CEO Changpeng Zhao, the decision was meant to maintain market stability.
“Binance has stopped FTT deposit to prevent the potential of questionable additional supplies affecting the market. Also, encourage other exchanges to do the same,” said Zhao.
Notably, the unscheduled release emerged after a week of drama that saw FTX under Sam Bankman-Fried come under scrutiny for alleged misappropriation of customer funds. The impact of the crisis has spilled over to the general market.
FTT technical analysis
In the meantime, FTT technical analysis remains bearish, with a summary aligning with ‘sell’ at 15 while moving averages are supporting a ‘strong sell’ at 13. For oscillators, they support buying at five.
Can FTT plunge to zero?
After the FTX collapse, the main focus has been on whether the FTT token can plunge to zero since it no longer has a use. Notably, the token was leveraged by FTX to offer incentives to traders.
Therefore, from a fundamental perspective, FTX no longer serves its role. However, depending on the community, the token might emulate other native assets of collapsed crypto businesses like TerraClassic (LUNC).
Such assets have exhibited a disconnect between value and utility as community members adopted initiatives like short squeezes to pump the value with the hope of emulating meme assets like Dogecoin (DOGE).
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
