FTX Crypto Token Rapidly Spikes 90% Following False Repayment Rumors
- FTX's native coin ($FTT) spiked ~90% yesterday following an influencer's false announcement that the defunct crypto exchange would repay customer funds today.
- An FTX creditor activist debunked the accusation, saying the court date determining the repayment plan is October 7.
- The hearsay has resulted in mixed investor interest: Some are buying $FTT to capitalize on legal actions, while others are exiting their positions amid repayment uncertainty.
Despite $FTT dropping near zero following FTX's collapse, it has risen from the ashes, spiking ~90% yesterday.
$FTT crumbled after FTX's infamous founder (Sam Bankman-Fried) stole $8B+ of customer funds in November 2022.The token's sharp uptick follows whispers of thedefunct crypto exchange finally repaying customer funds today.
$FTT Trading Volume Surged ~1,110% in 24 Hours$FTT surprised the crypto market yesterday. Over the last 24 hours,its trading volume has risen by ~1,110%, showing sudden investor and trader interest.
The coin's value rose from a ~$1.40 low to a ~$2.66 high yesterday. It's dropped to $2.19 since.
Sucha comeback has caught everyone off guard. For instance, the crypto platform Changelly predicted its price to be down 35.45% today and 35.05% tomorrow.
$FTT last jumped on March 15 during a bullish rally ($BTC hit its ~$74K ATH the day prior). However, its reclaimed glory didn't last long - it might not this time, either.
Notably, current market sentiment is positive yet again. The Crypto Fear and Greed Index is back in the Greed' zone, following its stint in Neutral' last week and fluctuating from Fear' to Extreme Fear' the weeks before.
But, regardless of the recovery signs, there are 13,217+ cryptos to pick from. So, why might investors want to invest in $FTTafter the significant FTX scandal?
Crypto Trendsetter Falsely Claims FTX Repayments$FTT's swift increase coincides with rumors of FTX paying back fraud victims.
Web3 influencer Crypto Rover' told his 318.5K+ viewers that FTX is repaying $16B to creditors today (September 30).
Many of Rover's X followers reacted positively to the post, saying Bullish,' This could be the liquidity boost the market's been waiting for,' and Sell off time,' potentially spurring more investors to get involved or sell up.
However, Sunil Kavuri (an FTX creditor activist) has since debunked this falsehood, after which the coin's price dipped by 21.46%.
Kavuri clarified that the next court date determining FTX's repayment plan is October 7.If the strategy gets the green light, he believes creditors holding claims below $50K might receive funds by this year's end. Meanwhile, more significant claims ($50K+) are anticipated to be repaid by Q1/Q2 2025.
Our research shows that many investors listen to crypto influencers (whether right or wrong) to capitalize on potential gains. Another example is Roaring Kitty, who announced purchasing $115.7M $GME on Reddit, which spurred the coin's price to spike 106%.
Additionally, the news highlights how existing investors might have been waiting for an opportune moment to exit their investments following the FTX drama, and who can blame them?
However, we advise investors to remain cautious because quick profit-taking at its current price anduncertainty surrounding FTX's repayment plan could cause a significant downturn.
ReferencesClick to expand and view sources
- FTX ($FTT) Token Price Today (CoinMarketCap)
- FTX Token (FTT) Price Prediction (Changelly Blog)
- Bitcoin ($BTC) Token Price Today (CoinMarketCap)
- Crypto Fear & Greed Index (Bitcoin Square)
- How Many Cryptocurrencies Are There In 2024? (Exploding Topics)
- Crypto Rover's Official Twitter Account (X)
- Sunil Kavuri's Official Twitter Account (X)
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