FTX (FTT/USD) token price has dropped more than 30% in one hour and nearly 60% in the past 24 hours, falling from around $22 on Monday to under $10 on Tuesday afternoon.
At the time of writing, FTT/USD was trading around $8.97 – it traded above $22 on Monday and its 7-day high as of 13:30 ET on Tuesday is $26.14 according to data from CoinGecko.
FTT token dumps as crypto reacts to FTX news
FTT’s massive price decline comes as a shocking development hit the crypto market – that Binance had struck an agreement that could see it buy FTX.
Despite FTX founder Sam Bankman-Fried noting that the cryptocurrency exchange’s possible acquisition by Binance would put the company “in the best of hands”, the day’s news appeared to have drained whatever positive sentiment about FTT token that lingered after this week’s revelations about FTX’s financial books.
This chart tweeted by Yahoo Finance shows how fast FTT tanked and is raising fears of a next LUNA.
$FTT is now down nearly 60%. https://t.co/Kxe6p5hkMn https://t.co/TTx19ma6sL pic.twitter.com/iznneYip0T
— Yahoo Finance (@YahooFinance) November 8, 2022
Hours earlier, FTX had paused withdrawals amid a rush from the crypto community to exit the cryptocurrency. Bankman-Fried said the exchange’s team was working to clear the backlog.
“Our teams are working on clearing out the withdrawal backlog as is. This will clear out liquidity crunches; all assets will be covered 1:1. This is one of the main reasons we’ve asked Binance to come in. It may take a bit to settle etc. — we apologize for that.”
Data from CoinMarketCap shows FTT’s 24-hour trading volume has jumped a staggering 254%.