In a surprising turn of events, FTX’s native token FTT experienced a dramatic surge of almost 90% within a 24-hour period. The token reached a nine-month high of $2.33, largely in response to comments made by SEC Chair Gary Gensler. Gensler suggested that there is a possibility of reviving the insolvent exchange under a new leadership. This news has injected a sense of optimism into the market, igniting a buying spree among investors.
In his remarks, Gensler emphasized the importance of any potential buyers ensuring that the firm operates within legal boundaries. He highlighted the need to prioritize investor trust and proper disclosures. Gensler specifically mentioned avoiding practices such as commingling functions, trading against customers, or using customers’ crypto assets for personal gain. These comments serve as a reminder of the SEC’s strict regulatory oversight and the need for transparency in the crypto industry.
Reports have surfaced regarding the ongoing bankruptcy process of FTX, with three potential buyers vying for the remains of the failed exchange. One of the bidders is Tom Farley, a former president of the New York Stock Exchange. Farley currently serves as the CEO of Bullish, a crypto exchange launched in 2021 with notable backing from Block.one, Peter Thiel, and Alan Howard. Proof Group, a cryptocurrency venture capital firm, and fintech startup Figure Technologies are also in the running. The conclusion of this process will mark a significant milestone in the potential revival of FTX.
Gensler’s comments underscore the expectation of strict SEC scrutiny for any potential acquisition of FTX. This increased scrutiny comes in the wake of allegations of mishandled customer funds during Sam Bankman-Fried’s leadership, the former head of FTX. Bankman-Fried recently faced a U.S. jury trial, where he was found guilty on all charges. The severity of the charges raises concerns surrounding the future of FTX and the steps that need to be taken to rebuild the trust of investors.
The positive impact of Gensler’s comments is reflected in FTT’s skyrocketing value. The token surged by approximately 90%, reaching $2.26969 at the time of writing. This rally added over $300 million to FTT’s market capitalization, which currently stands at $746.49 million. CoinMarketCap data also reveals a remarkable 940% increase in trading volume, reaching $230 million during the reporting period.
This recent surge in FTT’s price is not the first time the token has reacted positively to news of a potential restart. Earlier in the year, FTT’s value surged by 12% after court filings exposed FTX CEO John J. Ray III’s consideration of a restart plan for the faltering exchange. These instances indicate the market’s sensitivity to any news or developments that could impact the future of FTT.
FTT’s future hangs in the balance as potential buyers vie for FTX’s remains. SEC Chair Gary Gensler’s comments offer a glimmer of hope, emphasizing the importance of trust and transparency in any potential acquisition. It remains to be seen how the ongoing bankruptcy process will unfold and whether the chosen buyer can successfully navigate the SEC’s strict scrutiny. Nonetheless, FTT’s recent surge in value and trading volume signals that investors are cautiously optimistic about the potential revival of FTX under new leadership.
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