The post Warning : FTT Token Can Cause Huge Loss to Investors appeared first on Coinpedia Fintech News
FTT token of the bankrupt crypto exchange FTX witnessed a dramatic price surge by 115% and hitting $2.99 before closing at $2.40. The token has been trading around $1.30 for quite some time before suddening surging. Let’s understand why this token became so bullist amidst market uncertainty.
Social Media Hype
On September 29, many X handles including some big accounts started posting that FTX bankruptcy estate is going to start the reimbursements on September 30. These rumors spread like wildfire catching widespread attention. This also caused the token to start surging.
However, according to the official court filing the bankruptcy plan has not yet been approved. Data from Kroll shows that the confirmation hearing for the FTX case is set for October 7. If the court approves the plan, FTX creditors with claims less than $50,000 could start getting their repayments by the end of this year. However, people with claims higher than fifty thousand dollars would have to wait until 2025.
The FTT Surge
The native token of FTX exchange was trading with a highest value of $1.47 till September 29. As the repayment rumors started to spread, the token started rising sharply. The intraday trading pushed the price to $2.99 that came to a day close of $2.20.
The following day on September 30, people were expecting news regarding the start of repayment, however when it did not happen, the token fell bottoming at $1.72 and finally getting a day close at $1.83. Currently with a surge of 8.11% from the previous day, FTT token is trading at $2.2472.
Warning to Investors
The investors and traders of FTT token must know and understand that as the FTX bankruptcy proceedings are underway, the FTT token no longer has any use. The token may be liquidated by the estate to pay the creditors and this can cause loss to the investors. They should be cautious about the dates of the proceedings so they can prevent funds loss.
Source: https://coinpedia.org/news/warning-ftt-token-can-cause-huge-loss-to-investors/