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 an enthusiastic leader and the current chair of the U.S. Securities and Exchange Commission (SEC). He has the extreme experience that spans wall street, government regulation, and an angel teaching about cryptocurrencies and blockchain at MIT. He announced several initiatives to enhance investor protections in the $2 trillion cryptocurrency market. He previously led the Biden-Harris transition’s federal reserve, Banking, and securities regulation agency review team.    He was awarded Treasury's highest honor, the Alexander Hamilton Award, and also was a recipient of the 2014 Frankel Fiduciary Prize. He was born on October 18, 1957, into a Jewish family, in Baltimore, Maryland. Graduated from the University of Pennsylvania, earning a Master's degree in Business Administration. Additionally, he is also a professor at the MIT Sloan School of management. He has served in various governmental roles since the 1990s, such as the treasury department, Sarbanes-Oxley, CFTC, Swaps, Enforcement, Libor investigation, Maryland Financial Consumer Protection Commission, Securities, and Exchange Commission.    Gary Gensler will probably keep on filling in as seat of the SEC until 2026, accepting his renunciation. He has expressed his desires to present crypto-related approach changes later on that include token commitments, decentralized finance, stablecoins, guardianship, exchange-traded resources, and advancing stages. A few officials as well as his kindred SEC magistrates have scrutinized Gensler for not giving adequate administrative direction on crypto, possibly prompting a standoff between Congress and the association.    The SEC, CFTC, and Financial Crimes Enforcement Network handle advanced resource guidelines in the U.S., however, each with various jurisdictional cases, bringing about an interwoven methodology that crypto firms should explore to work legitimately. Whether 2022 will see a more clear way for organizations in the crypto space is questionable, yet the cosmetics of the SEC's initiative will fundamentally change following the takeoff of chief Elad Roisman in the first month of the year. Chief Allison Lee's term is likewise set to terminate in June 2022. 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.