FTX Token (FTT), the native cryptocurrency of the defunct FTX crypto exchange, is seeing strong gains in 2023 despite the platform’s problems.
Particularly, FTT has seen an unanticipated value increase of over 120% since the beginning of the year, according to statistics given by Kaiko with Finbold on January 23.
In spite of the asset’s affiliation with the defunct exchange, FTT has lately witnessed a persistent mini-bull run in the face of persisting risk concerns.
The data suggests that the FTT rise has occurred despite the token’s active markets falling from 28 to six. Currently, Binance, Huobi, Coinex, Kucoin, and Poloniex are FTT marketplaces.
Although crypto exchange Binance was accused of contributing to the demise of FTX after its decision to sell its FTT holdings, the majority of the token’s trading volume occurs on its platform.
Moreover, FTT trade volume remains relatively low, and statistics suggest that this might be a catalyst for 2023 gains. In this instance, a lack of liquidity has enabled opportunistic buyers to capitalize on investors’ attempts to unload FTT. In addition, the token is seeing a nearly balanced market for a major purchase and sell transactions.
Even if the prosecution against FTX creator Sam Bankman-Fried continues, the long-term viability of FTT remains dubious. Notably, the increases in FTT have followed a similar path to other defunct projects’ native coins.
As an example, Terra Classic (LUNC), the ancient chain of the now-defunct Terra (LUNA) ecosystem, has experienced stages of price breakouts as the community strives to reclaim past highs.
In general, these assets have risen despite the absence of a visible strategy and tokenomics. In some instances, communities believe that tokens such as FTT might replicate meme currencies such as Shiba Inu (SHIB) through using activities like as short squeezes. At the time of publication, FTT was trading at $2.13 with daily losses of around 3%.
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