In the uncertain market environment surrounding Changpeng “CZ” Zhao’s departure from the CEO position at Binance, the native cryptocurrency of the cryptocurrency exchange FTX, FTX Token (FTT), has experienced a significant short-term price surge. FTT has surged over 55% in market value in the past 48 hours and is currently trading at $4.63 USD, reflecting a 30% increase from $3.56 USD.
FTT, the original token of FTX, is undergoing another price surge after Binance’s $4.3 billion settlement with the U.S. Department of Justice, according to online analytics firm Santiment. This goes against expectations that FTT might see a price drop as it represents the relaunch of the FTX cryptocurrency exchange (FTX 2.0). The token’s value appears to have been on the rise, with the top ten wallets accumulating FTT tokens worth $12.8 million USD over 19 days.
According to Santiment, FTT has recorded a 337% monthly growth rate, with a significant portion of this increase occurring in the past 10 days. Notably, the top ten whale wallets have accumulated a significant amount of FTT during this period, leading to a 255% increase in FTT’s market value compared to Bitcoin.
FTX’s recent approach to asset liquidation and transferring significant sums across various exchanges has triggered increased activity in the cryptocurrency market. In a significant move, FTX and its sister company, Alameda Research, executed a noteworthy asset transfer transaction with a total value of $474 million USD.
This move is part of a broader effort to manage the financial obligations of the exchange and potentially pave the way for a new phase called “FTX 2.0.” The FTX team plans to relaunch the exchange in the second quarter of 2024. It’s worth noting that the FTT price surge occurs in the context of Binance having to pay $4.3 billion USD to the U.S. Department of Justice.
Data from DefiLlama shows that Binance’s outflow of funds reached $1 billion USD in the 24 hours leading up to 3:30 PM Hong Kong time on November 22. The exchange’s net outflow over the past 7 days has totaled $703.1 million USD.