FTT, the native crypto of the now-defunct FTX exchange, has experienced a significant surge of 40% in the past 24 hours. Interest from traders have similarly skyrocketed as is evident in the 358% rise in trading volume within the same period.
As of the time of writing, the current trading price of FTX stands at $1.77.
FTT’s resurgence started following a recent report by the Wall Street Journal. In the article, FTX CEO John Ray was quoted as stating that they have commenced the search for potential investors for the relaunch of the FTX.com exchange. The report revealed that the collapsed exchange is exploring various structures, including the possibility of a joint venture in its engagement with potential investors.
Ray first revealed his attempt to revive the exchange by launching FTX 2.0 in January when he told WSJ that “everything was on the table”. By 17 January, it was reported that FTX had recovered $5.5billion of liquid assets – $1.7bn in cash, $3.5bn in crypto assets and $0.3bn in securities.
During an 12 April hearing held in the United States Bankruptcy Court for the District of Delaware, lawyers from Sullivan & Cromwell representing FTX, disclosed that the crypto company had successfully recuperated approximately $7.3bn in liquid assets. They also revealed that the exchange could relaunch in Q2 2024.
The progress towards the relaunch gained significant momentum in May when the team presented a compensation report in a court filing. Subsequent to the release of this report, FTT experienced a remarkable surge of 13%.
FTX customer claim submission open till September
In a surprising turn of events, potentially marking one of the largest and most unexpected comebacks in the industry, customers now have the opportunity to submit proofs of claim. The bankruptcy court recently announced that the deadline for FTX customers to submit these claims is set for 29 September 2023.
The exchange’s committee of unsecured creditors shared this and included a portal for users to submit proof and claim. As part of the claim process, customers must complete a KYC procedure.
FTX and Alameda Research collapsed in November 2022 when the news of a solvency and liquidity crisis broke out. The implosion of FTX led to a downward spiral in the markets as the total market capitalisation fell below $1trillion. Following the events, CEO Sam Bankman-Fried stepped down and the exchange filed for bankruptcy.
