- FTX’s founder Sam Bankman-Fried (SBF), attempts to seek more funds from investors.
- Uniswap price is halfway toward recouping the losses incurred during the FTX scandal.
- Osmosis price stays in the green despite running into acute resistance at $1.25.
- The collapse of FTX and FTT could fuel the rise of DEX tokens like UNI, OSMO and CAKE.
The fall of FTX continues to leave unwanted debris in a market that has grappled with a lengthy downtrend since the beginning of 2022. Some cryptocurrencies are still bleeding from the crash that followed FTX’s bankruptcy proceedings under Chapter 11. Conversely, FTT price is up 22% daily and exchanging hands at $1.77.
Before its massive crash to near zero levels, FTX’s FTT was among the top centralized exchange (CEX) tokens. FTT is a pale picture of what it was a week ago, with its market cap undetermined, according to price data from Coingecko.
Binance Coin (BNB) remains at the helm of the CEX token category, boasting $45 billion in market capitalization. LEO Token (LEO) comes third with $3.53 billion behind OKB with $4.76 in market share.
On the other hand, Uniswap holds the reins among the decentralized exchange (DEX) tokens with a market cap of $4.82 billion, which is significantly below the top CEX token BNB. PancakeSwap boasts $583 million, while Osmosis (OSMO) closes the top three DEX tokens with $571 million in market capitalization.
Sam Bankman-Fried attempts to raise more funds from investors
The founder and former CEO of the embattled crypto exchange FTX, Sam Bankman-Fried (SBF), is reportedly reaching out to investors to raise more money. According to a report published by the Wall Street Journal (WSJ) on Tuesday 15, people familiar with the matter confirmed that SBF and some of the remaining employees were busy calling potential investors to raise $8 billion to repay FTX’s customers.
Neither FXStreet nor the WSJ had determined whether any investors committed themselves. A request by Reuters to speak to a spokesperson at FTX had yet to be answered. This is a developing story.
Will the FTX implosion fuel the growth of DEX tokens?
DEX tokens could start shining bright as investors seek alternative investments outside the CEX ecosystems, especially in light of the FTX debacle. According to the lead negotiator in the European Parliament of the legislation called MiCA (Markets in Crypto-Assets), Stefan Berger:
“The FTX/Alameda Research case makes it clear what dangers an unregulated crypto market brings with it. We still have a multitude of coins and crypto asset service providers whose concept is not comprehensible. MiCA addresses exactly this problem.”
With this in mind, regulators will likely focus on the operation of centralized exchanges and their respective native tokens. Since the extent of such regulation is undetermined now, investors could shift their attention to DEX tokens, which allow them to control their assets at all times.
Uniswap, PancakeSwap, Osmosis price in the green
All the top three tokens, Uniswap, PancakeSwap and Osmosis, are in the green, with UNI spiking over 8% on the day to exchange hands at $6.32. Osmosis price climbed 2.5% and is doddering at $1.18, while PancakeSwap’s price remains relatively unchanged at $3.94.
UNIUSD | CAKEUSD | OSMOUSDT price chart
Uniswap price is almost halfway through reclaiming the weekly losses accrued since the FTX saga commenced. UNI has the potential to make a 61.8% retracement north of support at $4.80, eyeing a profit target at $6.63. Buyers have the upper hand, especially with the Moving Average Convergence (MACD) indicator above the mean line (0.00).
On the other hand, Pancake Swap must break above the 50-day Exponential Moving Average (EMA) (in blue) at $4.00 to sustain the newly triggered uptrend. The same applies to the Osmosis price, with a break and hold above the 50-day EMA (blue) at $1.25 necessary for a continued northbound move, at least to the major resistance at $2.00.
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