FTX Token Soars Amidst Binance Uncertainty, Plans for 'FTX 2.0' Underway
Summary:
The FTX crypto exchange's in-house coin, FTX Token (FTT), saw a more than 55% market value surge amidst uncertainties at Binance following Changpeng "CZ" Zhao's CEO departure. The exchange is planning a reboot, known as “FTX 2.0”, by Q2 of 2024. In contrast, Binance's BNB token experienced a 13% drop as Binance’s 24-hour outflows exceeded $1 billion. The new CEO of Binance, Richard Teng, aims to regain investor trust, cooperate with regulators, and promote Web3 adoption.
As the Binance cryptocurrency exchange grapples with the unpredictable outcomes of its CEO Changpeng "CZ" Zhao stepping down, the FTX crypto exchange-owned crypto coin, FTX Token (FTT), is seeing a subsequent upsurge. The token has seen more than a 55% market value increase in under 48 hours, currently valued at $4.63, a sizable leap from the earlier $3.56. This surge comes in the wake of Binance settling with the United States Department of Justice for a mammoth $4.3 billion, a move that saw FTT defy the prediction of a price fall due to it being a new token launched as part of the FTX crypto exchange's reboot (FTX 2.0). FTT's price seems to have gotten a leg-up with the top ten wallet holders amassing $12.8 million in coins over a 19-day period, as pointed out by blockchain analyst company Santiment. Santiment's data shows FTT growing by a staggering 337% on the monthly charts, with much of this growth seen in the last 10 days when the top 10 'whale' wallets profoundly increased their FTT holdings, leading to a 255% rise in FTT's market value compared to Bitcoin.
FTX has recently been actively liquidating assets and making considerable inter-exchange fund transfers, stirring the cryptocurrency market's waters. A noteworthy development saw FTX and its partner Alameda Research carry out an impressive asset transfer worth $474 million. Yet, this could possibly lead to a downfall in FTT's price. Cointelegraph Markets Pro data suggests the likelihood of a price bottom being hit at the current low points as the market absorbs this negative news. This move by FTX aligns with a larger push to meet the exchange's financial responsibilities and possibly clear the path for the upcoming "FTX 2.0" phase. Plans are in place to reboot the exchange by Q2 of 2024. This rise in FTT's price interestingly coincides with Binance's hefty settlement with the United States Department of Justice.
On the other hand, Binance's own token, BNB, witnessed a 13% fall to $235. DefiLlama data highlighted Binance's 24-hour outflows exceeded $1 billion as of 3:30 pm, Hong Kong time, on Nov. 22. The exchange's net outflows over the last seven days totalled $703.1 million. Richard Teng, who has stepped in to replace CZ as Binance’s new CEO, expressed on "X" (the new name for Twitter) in his inaugural post that Binance sits firm on a foundation that’s stronger than ever before. He added that his preliminary focus would revolve around three key business areas: regaining investor trust, regulatory cooperation, and boosting Web3 adoption.
Published At
11/23/2023 12:45:46 PM
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