FTX Token (FTT) has dramatically fallen from grace, plummeting from its place in the digital asset industry. The coin used to be a native token of the FTX exchange which now has no registered status, and it was the real-league player at the time. It is currently being traded at $2, and the token has experienced an increase of 4.74% over the last 24 hours, which, by the way, is a small gain and does not really allow us to read between the lines of the heavy losses of the last months.
FTX Token has taken a considerable blow and is seen nowhere in the cryptocurrency rankings; it has changed from the top to the 100th position. At the crash of the market, FTTs market cap was only $660.47 million, a disgraceful fall from heaven for a prosperous asset. The trade of the token in 24 hours amounted to $28.18 million, which was a rise of 24.38%, and this suggests that not only are some traders sticking to it, but they are also actively participating and maybe trying to make profits on the side during the turmoil.
The total amount of FTT is 328.89 million, as all of them are already in circulation. This amount has not been altered, as there is no such thing as the maximum supply of FTT. Analysts argue that the absence of a maximum supply might cause the value of the token to depreciate,e as this may result in inflation. Firstly, overlooking the hand, the overall condition of our FTX and its token is changing for the worse.
The volume-to-market cap ratio of FTT was at 4.25% which means there was some decent action on the trading floor of the token over the last day relative to the total market cap. It is an index that helps traders and investors of crypto to measure the liquidity and the overall interest in a specific digital currency. This number, although insufficient, indicates that the FTT trading activity does not match the frenzy that the token once had in its prime time.
Lately, the collapse of FTX and the consequent plummeting of FTT to its lowest value have jolted the entire square of cryptocurrency. What used to be the most promising exchange on the market, with the magnetic Sam Bankman-Fried at the helm, has now become a horror story about the dangers of assets that are digital and thus rely on high volatility. The weakened value is not only limited to ordinary traders. A more significant effect may be witnessed on the massive institutions and venture capital firms that have taken risks of their trust and money in FTX.
The never-ending judicial process and investigations of the fraudulent activities of FTX and its past top brass keep the FTT in the limelight, but for totally wrong reasons now. The global regulatory agencies have moved cryptocurrency exchanges and tokens to the top of the list of assets to be more severely scrutinized and universally have authorized the use of the FTX incident as a piece of vital information to prove the need for more severe regulation in the field. This new spotlight has facilitated the introduction of a wider scope of cryptocurrency law and protective measures against future mishaps of this kind.
I am pessimistic, but in the opinion of some cryptos, the FTX token is still a good asset to possess as it is liquid. It can be well-served for bankruptcy implementation and reorganization also in the future. However, others still black out the fact that the token’s functionality and long-term stints look seriously limited since the FTX brand and its associated projects have completely burnt their boats.
FTX Token’s rise and fall bring a particularly apt example of cryptocurrency investment’s characteristic, high speculative notions. It grounds the argument that one should, first of all, undertake due diligence and, second, invest in many areas in order to be on the safe side when the potential for loss occurs. The crypto community still discusses the experiences acquired from this event, the more transparent operations and the more robust risk management practices the exchanges and token issuers should follow are the major concerns in these debates. ελληνικά
The FTX scandal is over, and investors are now on the fence about the broader crypto market. Basically everything was connected, and all the people in the blockchain space are trying to fix the situation. There was even a part where things went wrong and passed to other players. The government took responsibility to rebuild the trust between them and allow for the confidence to continue. The other issue is the implementation of the provided solutions, which should guarantee that similar incidents will not occur in the future.
The fate of FTX Token is still uncertain and it largely depends on the lost funds’ justice and the ongoing disputes. By this time, he cannot be successful and thus makes the perfect example, seeing as cyberspace is so dynamic by nature. Therefore, experienced investors, as well as newcomers, are suggested to attend the forthcoming event with a critical viewpoint and maximum carefulness.
