FTX Token (FTT) Price Doubles In 24 Hours, Here’s Why

FTX Token (FTT) is currently one of the top gainers in the crypto market in the last day as the coin rose over 100%. This sudden growth was triggered by an announcement that said the bankrupt FTX exchange could possibly reopen for business soon.

FTX Exchange Could See A Comeback

In a court hearing for the FTX exchange that was held on Wednesday, one of the attorneys working on the case dropped a bombshell that would trigger a massive rally. According to the Sullivan & Cromwell attorney, Andy Dietderich, they were considering a relaunch of the crypto exchange.

Now, the proposal was that users who still had funds locked on the platform would be able to transfer some of their frozen funds to a stake on the exchange instead of receiving cash back. This follows the attorneys revealing that they had been able to locate liquid assets belonging to the exchange worth $7.3 billion, which is a sizable amount but not enough to fill the hole in FTX’s balance sheet.

The attorney, however, explained that to restart an exchange the size of FTX, it would need a lot of cash. So re-opening the exchange is only one of many possibilities that they are considering at this point. Dietderich further explained that “There are possibilities that customers could have the option to take part of their proceeds that they would otherwise receive in cash from the estate and receive some kind of an interest in the exchange going forward.”

FTT Token Doubles In One Day

Following Dietderich’s comments in court, the price of FTX Token (FTT) quickly responded. Buying pressure mounted on the digital asset off of expectations that the defunct crypto exchange could resume operations and its price more than doubled in a single day.

The token which started out Wednesday at a price of $1.3 peaked at $3 before the correction. This accounted for a more than 100% increase in the price of the altcoin, making it one of the best performers in the last 24 hours.

FTT rises over 100% in one day | Source: FTTUSD on TradingView.com

As the hype has died down, the price of the digital asset has begun to decline but at the time of writing, it is still trading significantly higher than its Wednesday opening price. At a price of $2.2, FTT is still seeing over 50% gains in the last day alone.

The trading volume of FTT has seen even more significant growth, rising 2,000% to reach $435 million. Its market cap saw a 73% upside and has now reached $748 million, making it the 221st largest cryptocurrency by market cap.

Source: Read Full Article