The exchange token known as ftx (FTT), which was used on the trading platform before FTX collapsed and the exchange declared bankruptcy on November 11, has lost 91.6% of its value over the past seven days.
Although the utility of the FTT tokens is solely dependent on the support of the now-defunct FTX and Alameda Research, the token is still available for purchase for $1.85 per unit.
Additionally, on November 12, 2022, FTT’s deployer contract unexpectedly unlocked 192 million FTX tokens. Cryptocurrency aggregate websites like coingecko.com have reported the number of coins in circulation while a few crypto exchanges have stopped accepting FTT deposits.
The crypto community became aware of the movement of 192 million new FTT tokens by the ftx (FTT) deployer contract a little after 9:00 p.m. (ET).
Nobody is sure why this occurred, however, it included 192 million formerly locked tokens to the 133,618,094 FTT supply that was in circulation last evening.
The FTX token Contract Deployer “has sent out the majority of allegedly locked FTT tokens into circulation,” according to Coingecko.com’s website. Changpeng Zhao (CZ), the CEO of Binance, stated in a since-deleted tweet that Binance had stopped accepting FTT deposits.
According to CZ, Binance has banned FTT [deposits] to avoid the market-affecting possibility of shady extra supplies. We’ll keep an eye on things.
Similar to the Terra disaster, the FTX collapse happened within six days following the public release of Alameda Research’s balance sheet and the announcement by Binance CEO Changpeng Zhao that his exchange would be selling off all of its FTT tokens.
Ftx (FTT) was trading for $25 per FTT on November 5, 2022, and by November 8 it was trading for less than $5 per coin.
The FTX and Alameda teams jointly established the FTT token in July 2019 as a follow-up to the creation of FTX.
When owners transacted on the exchange or leveraged FTX OTC, FTT was designed to provide owners with FTX-based rebates. If a user uses both services and has between $1 and $5 million in FTT, they will instantly be elevated to VIP status.
The first 350 million FTT tokens were divided into 175 million “business tokens that unlock over a three-year period” tokens.
According to FTX’s transparency website preserved to archive.org, 73,461,920 FTT tokens were sold and vested by “July 21st, 2019”.
The white paper for FTT emphasizes that an “all-star team” is the primary source of FTT’s worth, despite the fact that FTT tokens provided refunds for FTX users and VIP benefits for large holders.
According to the FTT white paper, Sam Bankman-quantitative Fried’s cryptocurrency trading platform Alameda Research supports FTX (SBF).
The white paper states, “Alameda trades $600 million to $1 billion a day, amounts for about 5% of worldwide volume, and is rated second on the Bitmex leaderboard.”
After falling below $5 per coin on November 8, 2022, the value of FTT tokens has decreased to under $2 per token.
Despite being down 97.6% from its all-time high of $84.18 per unit on September 9, 2021, FTT has been able to avoid the incredibly quick death spiral that Terra’s LUNA (now LUNC) experienced when it crashed.
In reality, those who bought FTT before September 6, 2019, are still up 74% in value compared to the US dollar. During the initial exchange offering, 50 million FTT tokens were offered for a price between $0.10 and $0.20 each (IEO).
Before the deployer unlocks, data had been logged that indicated there had once been about 133,618,094 FTT in circulation.
After the listing, the FTT tokens bought in July 2019 become unlocked “at approximately 3% every day. Additionally, FTX regularly burned and repurchased FTT to improve the tokenomics of the coin.
According to statistics from coincarp.com’s richlist, 10 addresses possess 93.22% of the total supply of FTT, while 22,876 addresses have the ERC20 token. According to Into the Block statistics found on markets.bitcoin.com, 96% of holders are losing money.
FTT’s criteria for significant holder focus in Into the Block are 97%, and its price correlation with bitcoin (BTC) is at 0.9%.
In regards to transactions involving more than $100,000 in FTT tokens over the past seven days, $2.4 billion in FTT has been settled.
On November 8, 2022, FTT experienced a weekly high of 520 large transactions and the previous day witnessed about 21 large transactions. The average amount of FTT tokens exchanged during the previous week was $55,266.27.
The majority of FTT’s transaction value during the past 24 hours came from several exchanges, including Binance, Gat.io, Hitbtc, Huobi, and Kucoin.
Tether (USDT) is the object of more than 60% of FTT trades, which are then traded against BUSD, BTC, BNB, and ETH, in that order.
Contrary to LUNC, the token has not fallen to zero regardless of the negative press surrounding FTX’s demise and the massive concentration of FTT holders.
FTT is down more than 7% versus the US dollar since the news about the FTT deployer contract unlocking the last of the locked FTT tokens went public. FTT has been trading between $1.79 to $2.20 per unit during the previous 24 hours.
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