Cryptocurrency markets are inherently risky, and some altcoins present even greater potential losses for investors. FTT Coin is among these. The native token of the now-bankrupt FTX exchange, once the second-largest by volume, has experienced a loss of over 30% in light of recent developments. So, what comes next?
Why Did FTT Coin Fall?
FTX, once the second-largest cryptocurrency exchange by trading volume, declared bankruptcy in November 2022 after defrauding its customers. We have since witnessed the unfolding of a lengthy process. Recent statements indicated that a deal to restart the exchange would be finalized within December, with three potential buyers reaching the final stage.
Thus, the FTX exchange was set to be relaunched. However, as we have been stating over the past year, there were serious legal issues that seemed almost insurmountable. In December, when these rumors proved to be unfounded, we discussed the significant risks that FTT Coin investors faced. Now, it has been announced that the exchange will not reopen, rendering FTT Coin essentially worthless.
Even if the exchange were to reopen, the likelihood of the token being used again on the platform was extremely slim. In other words, the only path for FTT is further decline. The Kaiko report states:
“The FTX exchange token FTT lost more than 30% of its value last week following news that the exchange would not resume operations. FTT, which has had no real use case since FTX’s collapse, saw its price increase more than threefold since November 2023 based on hopes of the exchange’s revival.”
The Future of FTT Coin
The future is grim as there is no benefit for FTT Coin alongside the non-restartable exchange. For a long time now, FTT has been no different from useless meme coins. A significant portion of traders are buying and selling it for short-term, news-driven, speculative fluctuations to make a profit.
From this point on, FTT Coin will gradually lose volume and, once indifference reaches a certain level, it is likely that delisting decisions will be made. However, we may see nonsensical, speculative surges triggered by large investors to create exit liquidity before that happens. If FTT Coin is to become a meme coin, it has too many competitors; if it is to be an exchange token, its exchange has already gone bankrupt, and the end of the road is in sight.
