FTX Token Is Going to Zero but Experts Believe These Coins Will Pump Instead
Each day, the value of the FTX Token, FTT, decreases. And, as more information about FTX becomes available, the digital asset appears to be on its way to $0. Nonetheless, several other coins offer opportunities for investors to make gains.
The FTX market and the broader market have been experiencing a whirlwind week. An investigation into financial impropriety at Alameda Research, a quantitative trading firm founded by former FTX boss Sam Bankman-Fried, rocked the market's second-largest exchange.
Following the revelations, Binance CEO, Changpeng Zhao, confirmed that the exchange would liquidate all of its holdings in FTT. While Zhao had committed to a lengthy liquidation process, his tweet set off a fire sale as investors scrambled to get out of FTT. In the same vein, FTX’s users began withdrawing funds from the exchange en masse.
This led to FTX’s inability to process withdrawals and a liquidity crisis that immediately bankrupted the company. Eventually, the exchange had to turn to Binance for help.
On Tuesday, Zhao confirmed that Binance had signed a non-binding letter of intent to acquire FTX’s international business. This move alone caused a massive selloff in the market - and FTT, the asset that started this whole debacle, was hit the hardest. It lost 77% of its value between Tuesday and Wednesday as the liquidations kept coming.
Things worsened yesterday when Binance backed out of its deal to buy FTX. Per reports, FTX had misrepresented the extent of its liabilities, and Binance’s top brass was worried that this takeover could be a bridge too far.
FTX appears to be on its own, with no saviors in sight. As a result, the cost of FTT has decreased.
The asset is trading at $3.11, a downtrend of 31.51 in the last 24
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