FTX’s native token, FTT, seems to be in for a surge amid rumors that the bankrupt FTX exchange had recovered some funds and was about to make a comeback. The token, trading at $2.1 as of press time, had gained an increase of close to 70% within a 24-hour period.
The token’s trading volume has increased by 2000% showing the increased activity in the network amid the rumors spark. Within minutes of the stories being published, the price of FTT jumped from $1.31 to over $2, as shown by data performed by CoinMarketCap. Over 90% of FTT’s value has been wiped out from its all-time high when the company’s creator, Sam Bankman-Fried, was jailed and its national exchange filed for bankruptcy, which contributed to its decline.
What exactly happened?
According to recent sources, FTX has been successful in recovering $7.3 billion worth of assets and is mulling over the possibility of relaunching the exchange in the second quarter of 2023.
Attorneys from Sullivan & Cromwell representing FTX said, at a hearing that took place on April 12 in the US bankruptcy court for the district of Delaware, that the cryptocurrency business had recovered around $7.3 billion in assets. The hearing was held in the United States.
In spite of the fact that an investigation into the assets is still ongoing, a document from the creditors that were handed in during the month of March said that the four FTX business silos had around $4.8 billion in holdings as of November 2022.
According to the legal team, FTX will also consider restarting operations at its cryptocurrency exchange at some point during the second quarter of 2023. This suggests that a restart might take place as early as April if the company decides to go forward with the plan.
It was believed that FTX CEO John Ray III was contemplating resurrecting the defunct exchange during an interview that took place in January. Sam Bankman-Fried’s failing cryptocurrency exchange filed for bankruptcy in November 2022, and since then it has been involved in several judicial proceedings. The legal team that is defending the creditors has said that the cryptocurrency exchange known as FTX may give new consideration to its activities later on in the year.
