FTX’s Potential Relaunch: Implications for FTT Token Investors

The recent surge in FTT’s price has significantly boosted the overall valuation of both FTX and Alameda Research. However, it is essential to note that most of these funds cannot be easily converted into cash due to their illiquid nature. 

Gary Gensler Comments

In the last 24 hours, the price of FTT has increased by more than 200%. The United States Securities and Exchange Commission (SEC) Chairman gary gensler gary gensler Gary Gensler is the chairman of the U.S. Securities and Exchange Commission (SEC). His studies in finance and blockchain at MIT have helped him develop U.S. cryptocurrency regulations and policies. Quick Facts Full name Gary Scott Gensler Birth 18-10-1957, Baltimore, Maryland, United States Nationality American Education MBA from the University of Pennsylvania Marital status Married to Francesca Danieli (1986-2006) Net worth Estimated $100 million   Gensler has advocated for enhanced supervision of digital assets, seeking to regulate cryptocurrencies similar to securities. His work at the SEC has focused on safeguarding investors, regulating crypto exchanges, and establishing stablecoin policies.   Gary Gensler - Career Highlights 1997 – Became Assistant Secretary of the Treasury. 2009 – Led CFTC, regulating financial derivatives post-2008 crisis. 2018 – Taught blockchain and crypto at MIT. 2021 – Appointed SEC Chairman, focusing on crypto regulations. 2022 – Proposed stricter rules for crypto exchanges. 2023 – Took legal action against major crypto firms. 2024 – Advocated for stronger stablecoin and DeFi regulations.   Gary has collaborated with multiple lawmakers in formulating crypto policies. Even with disagreements with crypto investors regarding crypto policies, he continues to be a key player in the changing dynamic between regulatory frameworks and blockchain advancement.   Awards & Recognitions of Gary Gensler Year Institution  Description 2009 U.S. Treasury Financial Regulation Leader 2018 MIT Blockchain & Crypto Educator 2021 SEC SEC Chairman Overseeing Crypto Policies 2023 Bloomberg Most Influential Regulator in Crypto 2024 Forbes Top Policy Maker in Digital Assets   Useful Links to Connect With Gary Gensler Platform Link X (formerly Twitter) twitter.com/GaryGensler CFTC website Chairman Gary Gensler   Chairman remarks regarding FTX’s future are primarily responsible for the surge. 

The SEC Chair disclosed at DC Fintech Week that FTX might relaunch the platform provided its new owners run it legally. Following rumors that three businesses, including Tom Farley’s Bullish Exchange, are in the running to purchase FTX in preparation for a possible relaunch, Gensler made his claims.

As a result of the encouraging news surrounding FTX, FTT’s price increased significantly, raising the bankruptcy estate’s holdings by $427 million. There are 267 million FTT tokens in the wallets of FTX and Almada Research (worth around $761 million at current exchange rates). 

FTT has increased by 28% over the last day to trade at $2.94 as of this writing. The revelation caused the token’s price to surge to about $3, and it currently has a $1 billion market cap.  

The Catch to it!

Although the value of FTT has increased, FTX firms still own a sizable share of the token’s total supply, making the funds mainly illiquid. 76% of the 328.8 million tokens in circulation on the market are represented by the 267 million tokens it currently owns.

It is, therefore, no surprise that whale activity and retail interest in betting on the possibility of an FTX restart have driven the token’s spectacular rise in recent days. Despite the recent price spike, FTX firms have not deposited any of their holdings to an exchange for sale.

FTT tokens in their current model will probably not be sold to compensate customers impacted by the FTX collapse. 

However, a potential reorganization of the token’s mechanisms by the bankruptcy estate would put it back into play, which many traders have been doing lately with their token purchases.