As of the time of registration on June 28, FTT, the native token of FTX and the environment it is part of, had risen by an impressive 45%. The latest news from the respected Wall Street Journal that the exchange’s newly appointed management has started receiving bids from different groups that want to bring the conversation back to life can be seen as a reason for the price increase.
The unconfirmed information talks about the respected CEO, John J. Ray III, who took charge of FTX after it was officially declared bankrupt in the middle of November 2022.
Will FTX Start Up Again?
Sources who can be trusted say that the respected management team of the cryptocurrency exchange has had productive talks with potential investors who are very interested in seeing operations resume on the venerable platform.
Different control and management models are being considered as part of this effort. One thing that could be done is to start a cooperative business. If the present clients of FTX are given stock stakes in the new business, the effects of the company going out of business could be lessened. Also, when the exchange returns, it will work under a new name, improving its reputation and giving its users faith again.
About a half year after Ray III said he was putting together a particular unit to look into the possibility of resuming operations, rumors started to spread about the upcoming reboot. Even though the execs, especially Sam Bankman-Fried and Alameda Research, are said to have done illegal things, the exchange’s operational system is still sound, the respected CEO said. Observers have pointed out that a complete reorganization and a reboot of the business would be better for the many clients who had bad experiences after the exchange unexpectedly went bankrupt last year.
After FTX went out of business, the cryptocurrency market took a big hit. Bitcoin and Ethereum fell to new lows for the year 2022, which was the first time that had ever happened. During the turbulent bear market of the year before, when FTX went out of business, it put a lot of downward pressure on the price of BTC, causing it to drop below the $16,000 mark.
At the same time, the native digital asset of FTX, called FTT, dropped in value by a significant 92%. Even with the current growth rate, it is essential to note that the token’s current value is still far from its peak in October 2021, when each unit of FTT was worth more than $69. As of June 28, the trade price of FTT is $1.73, and its market value is $576,331,728.
Sam Bankman-Fried and Alameda Research Are Facing Charges
Sam Bankman-Fried, the respected thinker who devised the idea for FTX, is now caught in a complicated web of laws. Among the serious crimes he is accused of are wire fraud, commodities fraud, money laundering, and taking bribes. The respected United States Commodity Futures Trading Commission (CFTC) did a thorough probe that led to these claims.
The governing group tried to determine if FTX and Alameda Research knew they were manipulating the market and if there was a conflict of interest. The CFTC says that FTX and Alameda Research, which is FTX’s trading arm, should have told their clients about their trading activities while using their money to boost the value of FTT.
In this situation, Bankman-Fried is accused of using Alameda’s money to pay for his expenses, which reportedly include a hefty $10 million donation to a political group. The person in question has pleaded not guilty to all charges against them. By doing this, they are saying that they are innocent. So, a study is set to start in October 2023.