Home Coins Blockchain Bitcoin Ethereum How to Mining NFT Press releases Regulation Most Featured
Coins by Cryptorank

FTT Spikes After FTX Announces Surprise Comeback

Author Avatar
By Jessy Sloan - - 5 Mins Read

After an FTX court hearing at the United States Bankruptcy Court for the District of Delaware, the public is now aware of the exchange's plans to come back to business. From their legal counsel, it seems FTX has made a major recovery of most of the funds that were lost during the collapse of the mega crypto exchange. With this fund recovered, the legal counsel of FTX seems to be pleading for a comeback as a crypto exchange. However, there are more effects to this new development as the FTT price has rocketed since the news broke out. 

According to the lawyers defending the exchange at the law court, they have made good progress by recovering approximately $7.3 billion of liquid assets. According to the attorney from Sullivan & Cromwell, the law firm representing FTX,  the crypto exchange has made progress in recovering cash, cryptocurrencies, and other digital assets that amounted to $7.3 billion. Sullivan & Cromwell’s Andrew G. Dietderich told bankruptcy judge John T. Dorsey that the new management behind the collapsed crypto exchange is also planning to bring it back to life. 

But the judge presiding over the case asked about the funding of the FTX, assuming they make a comeback to the crypto industry. Since the FTX collapse, there have been some bad days for the crypto industry, as it received an immediate negative impact from the collapse. The lawyers representing FTX said that they are considering using creditors' funds to start up the new FTX exchange. They also mentioned they will use other funding sources, such as investment from third parties interested in the project. For the verifiable customers who post their funds to the crypto exchange, they would also be paid back using some of the funds. According to the lawyers of FTX exchange, the approval of their request would help them return in the second quarter of 2024. It is left for the judge presiding over the case to make the approval.

FTX exchange app on a smartphone

FTT Price Surge 

The price of FTT has dramatically increased by a considerable margin after the news of FTX's return broke out to the public. The cryptocurrency rose so high that it was very close to reaching a 100% price increase. At a 95% increase, the FTT price stood at $2.72.

However, since the rise of the token was just a reaction of the market toward FTX news, the bullish trend didn't continue. The rally paused as FTT's price started going down. At the time of writing, the token's price was trading at more than 69% at $2.28. However, with the return of FTX, the token has a very high chance of increasing even more massively than it has done in the past. 
On the other hand, FTX return might not really be as easy as it sounds. Assuming the fallen crypto exchange gets permission to start its operations, it would be tough for them to win back the trust of crypto traders. With the previous experience of the FTX collapse, users might find it inconvenient to trade at the crypto exchange. On Twitter, many users have reacted to the return, saying it would be hard for the exchange to get customers. Assuming they have customers, they would be heavily criticized for any slight mistake.