FTT token price pops as FTX floats possible plan to reopen exchange
Quick Take
- Lawyers for FTX suggested that the exchange could be brought back online as part of a broader reorganization plan.
- FTX’s FTT token jumped on the news.
FTT, the crypto-token tied to the now-defunct crypto exchange FTX, traded sharply higher Wednesday.
The apparent cause: a statement from FTX's legal team in bankruptcy court that the exchange could potentially be brought back to life as part of a broader reorganization plan.
To be sure, such a plan hasn't been presented, and the court would then need to sign off on it. But just the idea appears to have been enough to push the token higher.
Market data shows that FTT was trading at around $1.32 against the stablecoin BUSD on Binance. Binance's FTT/BUSD currently accounts for roughly 70% of reported FTT trade volume, per CoinGecko.
As news spread, the price of FTT climbed to just over $3 as trading volumes soared as well. The token was trading at around $2.44 as of 4:20 p.m. ET.
RELATED INDICES
As The Block reported earlier, FTX's legal team indicated it plans to submit a reorganization plan in July.
Also on Wednesday, the bankruptcy court denied former FTX CEO Sam Bankman-Fried's bid to tap a $10 million insurance policy to help pay his legal bills.
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