FTX native token, FTT, has surged by over 21% in the daily charts and by over 155% in the last 14 days. Moreover, the token’s price has spiked by over 300% over the previous month. FTX’s latest FTT spike comes after Binance CEO Changpang Zhao (CZ) pleaded guilty to charges and stepped down as the company’s head.
Also Read: Binance Sees $1B Outflow Post CZ Resignation Amid U.S. Legal Woes.
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According to crypto analysis firm Santiment, FTX’s native token entered its second rally after CZ’s departure. The firm highlights that FTT’s price was pushed by the ten largest wallets, accumulating $12.8 million worth of tokens in 19 days.
Why is the FTX native token rallying?
FTT’s latest price spike is commendable, especially given that the token does not have a lot of utility. It is possible that the uncertainty around Binance, the world’s largest crypto exchange, may have caused investors to turn bullish on FTT. Just a year ago, CZ announced that Binance would liquidate its FTT holdings to reduce risks associated with FTX. Binance’s decision opened the doors for what was happening inside FTX and its sister company, Alameda Research. The move led to a cascading effect across the crypto space, eventually leading to FTX’s collapse. It is ironic that a year later, Binance’s CEO pleaded guilty to charges levied by American authorities, leading to a surge in the price of FTT.
Also Read: FTX: Former Executives to Launch Brand New Crypto Exchange
However, it is unclear if the FTT rally can sustain itself. Moreover, given the guilty verdict for the now-defunct exchange’s CEO, Sam Bankman-Fried, it is unlikely that the latest surge will last very long. However, former executives have revealed that they plan on launching a new crypto exchange in the future, and that could usher some positive sentiment for FTT.
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