FTT price rallies by 25% as FTX founder Sam Bankman-Fried suggests issuing new token
- FTX former CEO Sam Bankman-Fried agreed with a Twitter post of allotting 100% of the profits to token holders.
- Sam Bankman-Fried also blamed the fallout of the FTX buyout by Binance on the latter exchange's CEO, Changpeng Zhao.
- FTT price shot up by almost 25% over the previous day following Bankman-Fried's comments.
FTX founder Sam Bankman-Fried has been attempting to rebuild the now-bankrupt exchange despite being removed from the company's day-to-day operations. His desperation towards "making investors whole" has led to the former CEO even considering issuing a new FTX token altogether, triggering a rally in FTT price.
FTX to be restarted by Sam Bankman-Fried
FTX's ex-Chief Executive Officer responded to a tweet by known trader Ran Neuner who suggested that the fallen exchange should be "refired". He went on to add that in addition to restarting the FTX exchange, a new token should also be issued and distributed to creditors.
Furthermore, Neuner suggested that 100% of all the profits should be given to token holders in order to make the new FTX "the biggest exchange in the world". In response, Sam Bankman-Fried stated,
"I continue to think that this would be a productive path for parties to explore! I *hope* that the teams in place will do so."
However, this did not sit well with the crypto community, who mocked his eagerness. Even the CTO of Ripple, David Schwartz, questioned Bankman-Fried's logic by tweeting,
Given that you've already allocated 100% of the profits, where would the money to build such a thing come from?
— David "JoelKatz" Schwartz (@JoelKatz) December 9, 2022
On the other hand, Sam Bankman-Fried continued to blame the failure of FTX's buyout on Binance's CEO Changpeng Zhao, saying,
"You threatened to walk at the last minute if we didn't kick in an extra ~$75m. We did it anyway because this just made us feel more confident we didn't want Binance on our cap table… Among other things, as you know, you didn't even have the rights to pull out as an investor unless we chose to buy you out."
In response, Changpeng Zhao stated that Binance could not be forced to sell if it did not want to. He added that the world's biggest exchange also always had the veto right to block any additional fundraising being conducted by Sam Bankman-Fried.
FTT price rallies by 25%
Although the crypto community did not react positively to FTX's former CEO's suggestions, the FTT price certainly did. Amid Sam Bankman-Fried's comments, the altcoin shot up by almost 25% in the span of 24 hours to trade at $1.6898.
FTT/USDT 1-day chart
This marked the first major sustained spike for FTT price since the token collapsed on November 6, losing its value by almost 95%.
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
