In a stunning turn of events, FTX’s native token FTT experienced an incredible surge of almost 90% in the past 24 hours, reaching a nine-month high of $2.33. This sudden increase was triggered by the SEC Chair Gary Gensler’s suggestion that the insolvent exchange could be revived under proper leadership. Gensler emphasized the importance of operating within the confines of the law and prioritizing transparency to instill trust and confidence among investors and stakeholders.
Reports have indicated that Tom Farley, a former president of the New York Stock Exchange, is among the three potential bidders vying for the remains of FTX during the ongoing bankruptcy process. Farley currently serves as the CEO of Bullish, a crypto exchange launched in 2021 with substantial backing from Block.one, Peter Thiel, and Alan Howard. The other contenders are the cryptocurrency venture capital firm Proof Group and fintech startup Figure Technologies.
The efforts to revive the insolvent crypto platform are said to be nearing their conclusion as the three prospective buyers go head-to-head. Once a successful buyer is determined, they will have the responsibility of overseeing the reactivation of FTX’s operations after the company’s anticipated exit from bankruptcy, which is slated for 2024. However, it is important to note that any potential acquisition of FTX will be subject to stringent scrutiny from the SEC, particularly in light of the allegations of mishandled customer funds that transpired under the previous leadership of Sam Bankman-Fried.
Gary Gensler’s comments regarding the acquisition of FTX have had a notable impact on FTT’s price performance. Following his remarks, FTT experienced a staggering spike of approximately 90% to reach $2.26969 at press time. This rally added over $300 million to the struggling token’s market capitalization, which currently sits at $746.49 million according to CryptoSlate’s data. Furthermore, CoinMarketCap data reveals that FTT’s trading volume during the reporting period surged by a whopping 940% to $230 million.
It is worth mentioning that this is not the first time news of a potential restart has positively affected FTT’s price performance. Earlier in the year, its value increased by 12% following court filings that indicated FTX CEO John J. Ray III was contemplating a restart plan for the failed exchange.
The recent surge in FTT’s value and market capitalization can be attributed to SEC Chair Gary Gensler’s comments about the potential revival of FTX. As the bankruptcy process reaches its conclusion, key players such as Tom Farley and his company Bullish are in contention to breathe new life into the insolvent crypto platform. However, any prospective buyer should be prepared to navigate the landscape of rigorous SEC scrutiny due to the history of mismanagement of customer funds under previous leadership. Only time will tell if FTX can indeed make a successful comeback under the guidance of a new and trustworthy leadership team.