FTT, the native token of the bankrupt FTX crypto exchange, experienced a remarkable surge of over 72% in response to comments from SEC Chair Gary Gensler hinting at the potential revival of the exchange, albeit within legal boundaries.
Gensler’s statements followed speculation about three potential buyers eyeing FTX, including Bullish, a crypto exchange backed by former NYSE president Tom Farley.
While none of the potential buyers have expressed interest in reviving FTT, several companies are actively competing for the opportunity to take control of FTX.
The FTT token played a pivotal role in FTX’s downfall in November of the previous year. The unraveling began when FTX used FTT tokens to settle Binance’s equity position in July 2021.
Subsequently, Binance sold its holdings, citing “recent revelations” that triggered a chain reaction leading to FTX’s demise.
Alameda Research, a sister trading firm to FTX, faced scrutiny for mishandling user funds and engaging in multi-billion-dollar loans using FTT tokens as collateral.
Former FTX CEO Sam Bankman-Fried was recently convicted on seven charges of fraud and conspiracy linked to the collapse of the FTX exchange.