FTT price fails to sustain 25% gains despite FTX confirming plans to relaunch the crypto exchange

FTT price recorded massive gains in the early hours of August 1, but the rally proved unsustainable as the network still inspires skepticism following the implosion of Sam Bankman-Fried’s crypto empire, FTX, in November. The surge happened as chatter on BALD meme coin dominated Crypto X following a voluminous rug pull that saw almost $70 million in Ether (ETH) disappear.

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FTT price rally proves unsustainable

FTT price surged 25% to record an intra-day high of $1.679 on August 1. The surge constituted a 115% climb from its range low at $0.774. Nevertheless, it turned out to be premature, correcting almost immediately to the current price of $1.361, denoting an 80% whitewash of the day’s gains.

FTT/USDT 1-Day Chart

The rally followed confirmation that FTX was re-launching the cryptocurrency exchange, after the bankruptcy administrators filed a proposal to restart FTX.com. 

Catching the hype around this news, spot traders bought FTT, causing a price surge as demand grew. As is characteristic of their buying pattern, they sold the token shortly after the price surge, collecting profits as the “sell the rumor buy the news narrative” played out.

Notably, the news leaves FTX debtors unfazed considering the exchange will only serve offshore clients after it launches, with the plan articulating, “Former FTT holders are not entitled to get anything.” Nevertheless, there is a plan to reimburse creditors based on a claiming structure, with the filing mapping out a layout for claimants’ settlements. Third-party investors are first in line. The decision is pending community approval.

 Citing FTX Chief Executive Officer John J. Ray III, who also serves in the Chief Restructuring Officer capacity for the FTX Debtors said in the official announcement:

Our goal is to achieve a consensual plan and emergence from bankruptcy. We are committed to working through these matters in the third quarter of 2023 and to filing an amended plan and a disclosure statement in the fourth quarter of 2023.

FTX founder Sam Bankman-Fried to BALD rug pull

Meanwhile, FTX founder Sam Bankman-Fried (SBF) has been linked to the recent BALD rug pull, on speculation that he orchestrated the entire debacle. As reported, the developer behind the BALD meme coin withdrew all the liquidity from the Base network on July 31 before leaving a farewell message to his victims.

In the latest development, industry experts speculate that the culprit may be SBF or someone linked to FTX sister firm, Alameda Research, citing a similarity in the choice of words. Noteworthy, Adam Cochran, a renowned personality on Crypto X famous for his bold stance about different matters, seems to buy this speculation, the same as several individuals who have history working at FTX.

Assertions by one sleuth, in particular, stand out, as he draws similarities between SBF’s popular phrases.

The speculation has also extended to Reddit, where a crowd-sourced probe reveals transactions from FTX and Alameda Research to the since-disappeared developer going back as far as two years ago. Further, the investigation shows that an address that made occasional transfers into the developer’s wallet on Binance exchange was also involved in the crisis that led to the Terra USD (UST) depeg in May 2022.

There is no certainty as to whether SBF is the perpetrator, but the news remains a concern to traders and investors who are still unhealed from the losses made in November. This probably explains the quick move to cash in on the August 1 gains.