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Why Has FTT Dropped More Than 30% This Week?

2 mins
Updated by Kyle Baird
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In Brief

  • FTT token faces substantial decline after FTX's decision not to resume operations, defying earlier expectations.
  • Positive price movement and optimism for FTX's revival precede the recent downturn in FTT's value.
  • Kaiko research reveals over 30% loss in FTT value following FTX's non-revival announcement post-November 2022 collapse.
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The FTT token, the native token of the now-defunct crypto exchange FTX, has recently faced a significant decline. Speculation arises from FTX’s decision not to resume operations, contrasting earlier expectations.

This comes after positive price movement and optimistic predictions for FTX’s revival just months ago.

FTX Not Relaunching Sparks FTT Collapse: Research Firm

Kaiko research reveals a substantial decline in the FTT token after the announcement that the crypto exchange FTX would not be relaunching following its November 2022 collapse.

“FTX exchange token FTT lost more than 30% of its value last week after reports that the exchange will not be reviving its operations. FTT which has no real use case after the collapse of FTX – has seen its price more than triple since November 2023 on FTX revival hopes.”

At the time of publication, FTT’s price stands at $1.73.

FTT Token Price Chart 1 Month. Source: BeInCrypto
FTT Token Price Chart 1 Month. Source: BeInCrypto

Between the end of November and the start of December 2023, FTT pumped over 350% at the news that FTX may return.

The legal team for FTX never confirmed the rumors but did hint that it may be possible and something that would be explored in 2024. However, they did state that it would require significant capital.

Read more: FTX Collapse Explained: How Sam Bankman-Fried’s Empire Fell

FTX Bolsters Repayment Plan, Despite FTT Token Price Decline

However, despite the price decline, the debtors of FTX are making significant process in consolidating a payment plan to repay its creditors following the collapse.

This focus is replacing the previous efforts to restart the exchange.

BeInCrypto recently reported that this decision not to revamp the exchange comes after months of negotiations with potential bidders and investors.

Read more: Who Is John J. Ray III, FTX’s New CEO?

These did not materialize into sufficient funding for rebuilding the exchange.

Meanwhile, earlier reports highlighted FTX’s notable progress in asset recovery, securing over $7 billion to repay customers.

However, disbursing these funds will rely on crypto’s values from November 2022 during a market slump. This choice has sparked customer complaints due to perceived undervaluation, given Bitcoin’s substantial price increase since then.

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Ciaran Lyons
Ciaran is a cryptocurrency journalist based in Sydney, Australia. He particularly enjoys writing about CBDC developments and the practical implementations of cryptocurrency in real-world scenarios. He has also appeared across major television networks in Australia including Channel Ten, Channel Nine and SBS TV. Prior to his foray into cryptocurrency, Ciaran worked as a presenter on national radio station Triple J.