Modified date: November 22, 2023 at 17:17 GMT

FTX Token price prediction: What’s in store for FTT in the FTX 2.0 era?

FTT is surging as buyers are competing to takeover and relaunch the FTX exchange…

November 22, 2023 at 17:17 GMT

The bankruptcy of FTX, the once third largest crypto exchange, shook the industry. It left investors out of of billions of dollars as FTX used customer money to fund risky bets and extravagant lifestyle purchases. 

Founder and former CEO Sam Bankman-Fried (SBF) was recently found guilty on all 7 counts of defrauding customers. While the crypto community waits for the sentencing announcement expected next year, they are surprisingly bullish on the native FTX token ($FTT). 

A Wall Street Journal article recently revealed that among three buyers looking to acquire and relaunch FTX was Bullish, the crypto exchange run by Tom Farley.

As of 22 November, FTT was trading up 41% in the past 24-hours. However, FTX Token price predictions are divided on whether the cryptocurrency can recover its investors’ trust. 

What is FTX?

Launched in 2019, the FTX cryptocurrency exchange quickly established itself as a major player in the industry. Known for its wide array of products and services, including derivatives, options, and volatility products, FTX gained popularity among both retail and institutional investors. 

The platform, praised for its innovative features and user-friendly interface, saw a meteoric rise in its user base and trading volumes. The company hosted over a million users at its peak in July 2021, when it was the third largest exchange by volume. 

The founder Bankman-Fried became a prominent figure in the crypto space during this peak. He was once known for his “effective altruism” viewpoints. But this positive outlook of the “crypto king” all came crashing down at the end of 2022. 

Amidst a turbulent year for cryptocurrencies, FTX faced significant challenges. The exchange, once valued at billions of dollars, experienced a dramatic downfall. This collapse can be attributed to a combination of market volatility, regulatory scrutiny, and internal management issues. 

The downfall of FTX led to the exposure of illegal practices taking place in the now bankrupt exchange. FTX was charged for moving customer funds to its sister hedge fund Alameda Research, where it financed risky bets and extravagant purchases.

FTX filed for bankruptcy by the end of the year, which saw creditors lose billions of dollars worth of funds. 

Now, after a five week trial, SBF has been found guilty by a New York jury on all seven counts of defrauding his customers. His sentencing is expected to take place in March 2024, where he could receive over 100 years in prison.

The FTX Token

The exchange’s native FTT cryptocurrency has also suffered greatly throughout this process. 

The FTX Token was central to the exchange’s ecosystem. Designed as a utility token, one of its primary uses was to offer reduced trading fees on the FTX exchange. Holders of FTT could enjoy discounts on transaction fees, which scaled up based on the amount held. This feature incentivised users to buy and hold the token.

FTT was designed with several mechanisms to support its value and utility. A significant aspect was the buy and burn program, where a portion of fees generated by the FTX exchange was used to buy back and burn FTT tokens. This process was intended to reduce the total supply of FTT over time, potentially increasing its scarcity and value. 

FTT price history 

Despite its well-thought-out utility and tokenomics, the value of FTT was heavily impacted by the downfall of the FTX exchange.

The FTT cryptocurrency went live at $1.72 on 1 August 2019, a few months after the launch of the FTX exchange. It experienced a gradual climb in its first year, hitting $3.50 in August 2020.

FTT saw its largest bull run to date during the wider upbeat market in 2021, profiting from bullish crypto investors on the exchange. It surged above the $10 mark by the end of January and reached a peak of $34 on 20 February. 

It climbed even higher in May, when it rocketed to a high of $61. Soon after, FTT corrected back to the $30 level. 

During the summer that year, FTX closed a $900m fundraise, which valued the cryptocurrency exchange at $18bn. Then, in September, it signed a sponsorship deal with the Mercedes Formula 1 team, putting its logo on the championship-fighting car at the time. 

FTT soared to its all-time high of $85.02 on 9 September, before settling back down to the $40 level by the end of the year. 

Despite a few peaks, 2022 was a bearish year for the FTT cryptocurrency. It entered a downward trajectory after the collapse of the Terra ecosystem in May and June. The FTX token fell to the $20 mark by the summer of that year. 

Its sharpest decline to date took place in November 2022 when the exchange filed for bankruptcy and the shaky business practices were exposed. 

CEO of Binance Changpeng “CZ” Zhao kickstarted this downfall after announcing his plans to liquidate the exchange’s holdings of FTT, citing “recent revelations”.

After the exchange’s liquidity crisis and subsequent bankruptcy filing on 11 November, the token plummeted to $1.49, dropping below its initial launch price for the first time. 

It spent the rest of 2022 and most of 2023 fluctuating between $1 and $2.

Recent FTX news

However, the FTT token has recently seen an uptick in price after reports that Tom Farley, former president of the New York Stock Exchange (NYSE), was looking to acquire and reboot the collapsed exchange. 

According to a Wall Street Journal article, Bullish, the crypto exchange run by Farley, was competing to acquire FTX. Others looking to buy the bankrupt exchange included the fintech startup Figure Technologies and cryptocurrency firm Proof Group. The winning party is expected to be picked in December this year, with the exchange potentially relaunching in 2024. 

FTT climbed back above its launch price, peaking at $4.28 on 11 November. At the time of writing, it was trading at $4.22, up 41% in the past 24 hours. 

FTX Token price prediction

Its a mixed bag when it comes to FTT token price predictions. After bearish year for the cryptocurrency, many forecasters are conflicted on whether it can regain investor confidence. 

CoinCodex’s FTX Token price prediction for 2023 said there was currently neutral sentiment. However, a total of 21 technical indicators gave “bullish” signals, outnumbering the 9 “bearish” signals. The site’s FTT crypto price prediction said it would drop down to $3.52, where it would stay for the next month. 

Similarly, PricePrediction anticipated the cryptocurrency to average out at $3.58 this year. The site’s FTX price prediction for 2024 then anticipated a climb to $5.30, before climbing to $7.77 the following year. The cryptocurrency could then rocket to $50.82, according to its FTT price prediction for 2030. 

An even more bullish forecast was provided by DigitalCoinPrice. The site suggested the cryptocurrency would average out at $8.46.The FTX Token price prediction for 2025 expected it to continue climbing to $13.24. By 2028, the exchange crypto was suggested to soar back above the $20 level. The site’s FTX token price prediction for 2030 anticipated it to reach $43.63.

On the other hand, WalletInvestor gave a bearish outlook for FTT. The site’s FTT price prediction for 2024 expected it to crash to a new all-time low of $0.42.


Should I invest in FTX?

It depends. FTT price predictions are mixed after the extremely bearish year for FTX. WalletInvestor anticipated new all-time lows, while PricePrediction suggested it could eventually climb back above $50. However, the cryptocurrency market is highly volatile and you should never invest more than you can afford to lose. 

Is FTX a good investment?

After the 2022 bankruptcy of the FTX exchange, buyers are currently competing to acquire the platform and relaunch it next year. A winner is expected to be announced later this year. FTT is currently up 41% in the past day. Remember, investors should be cautious and always conduct thorough due diligence.

Disclaimer: The information provided in this article is for informational and educational purposes only and should not be construed as financial advice. CoinNews and its authors are not financial advisors or experts. We recommend that you consult a professional financial advisor or conduct thorough research before making any investment decisions. Cryptocurrency investments carry a high degree of risk, and you should only invest an amount you are willing to lose. The opinions expressed in this article are those of the author and do not necessarily reflect the views of CoinNews or its affiliates.