The utility token of the defunct crypto exchange FTXThe FTT has been one of the biggest gainers in recent days, rising 55% in just 48 hours alone. This has led to speculation about what could be driving the token’s rally. One of them relates to a recent event in the crypto industry.
FTT Token’s Recent Rally Powered by Binance News
In a after on its X platform (formerly Twitter), market intelligence platform Santiment noted that the second rally for FTT came after the Binance news. The the world’s largest crypto exchange and its former CEO Changpeng “CZ” Zhao had both pleaded guilty to criminal charges and agreed to a settlement of more than $4 billion in fines.
As for the correlation between the two events, Binance and FTX have always been closely linked in several aspects. First of all, CZ has done that in particular sometimes credited for his responsibility for the collapse of FTX. Prior to the bank run on FTX, the former director had made a tweet about his company’s liquidation of their FTT holdings.
As such, Binance, which is going through this difficult phase, is believed to appear bullish for the FTT token due to the hostility that the FTX and Binance ecosystem share. Interestingly, as the FTT continued to rise, Binance’s BNB has suffered a reverse fate. BNB has fallen by more than 6% in the past seven days facts from CoinMarketCap.
The conviction of Sam Bankman-Fried also contributed
It’s worth mentioning that the FTT rally didn’t just kick off thanks to the Binance news. FTT’s market value has reportedly risen approximately 255% against Bitcoin in the past three weeks. This resurgence started just after the top ten wallets started to rally, with these whales buying $12.8 million worth of FTT since November 3.
Interestingly enough, November 3 falls one day after the former CEO of FTX Sam Bankman-Fried (SBF), had been convicted. The founder of FTX was convicted of everything seven charges against him. Considering this, it seems that his belief was taken as bullish for these whales who decided to double down on their FTT holdings.
Another factor that may also be contributing to the token’s revival is the talks about it FTX is making a comeback. The defunct crypto exchange is reported to have suitors interested in restarting it. Securities and Exchange Commission (SEC) Chairman Gary Gensler had also noted that this was a possibility as long as rules and guidelines are followed.
At the time of writing, the FTT is currently trading around $4.50, up more than 21% in the past 24 hours and up more than 336% in the past month, according to facts from CoinMarketCap.
FTT tops list of gainers | Source: FTTUSDT on Tradingview.com
Featured image from IQ.Wiki, chart from Tradingview.com