FTT/USD Cryptocurrency Belonging to Defunct Cryptocurrency Exchange FTX Explodes 60% Over the Last 24 Hours

The cryptocurrency belonging to the defunct cryptocurrency exchange FTX FTT/USD dramatically jumped on Sunday, dwarfing the gains made by the rest of the market.

Cryptocurrency exchange FTX’s native token FTT/USD soared on Sunday, notching the highest gains and shrugging off the broader market’s lackluster performance.

What Happened: FTT exploded more than 60% in the last 24 hours, emerging as the market’s biggest gainer by a significant margin. The coin’s trading volume surged an eye-popping 3734%, with buying pressure catapulting it to levels last seen in mid-March.

The rally came as the total market capitalization witnessed a decline of 1.89% in the last 24 hours.

FTT’s massive spike was particularly unusual, given that the coin doesn’t have any use at the time of writing. It lost over 90% of its market value after FTX’s fraudulent activities were unearthed, leading to the exchange’s bankruptcy in the fall of 2022.

FTX’s disgraced founder Sam Bankman-Fried was sentenced to 25 years in prison earlier in March for his role in the sensational fraud case.

See More: Maxine Waters Says ‘Crypto Is Inevitable,’ Other Countries Are ‘Way Ahead’ Of The United States

Why It Matters: Rumors that FTX would begin repaying fraud victims on Sept. 30 may have contributed to FTT’s odd surge.

However, these rumors were categorically debunked by FTX creditor activist Sunil Kavuri, who said that the next court hearing for the restructuring plan was on Oct. 7.

If the plan is approved, creditors with claims below $50,000 may receive distributions by the end of 2024, Kavuri said. Those with larger claims may have to wait until the first or second quarter of 2025.

FTX DistributionFalse: Large accts. spreading false info, FTX distribution has started and/or start on 1st Oct etc and $16bn inflow7th October: Plan hearingApprox No.Est. $5.5bn claims bought (50%) – not crypto investors – won’t reinvest in cryptoClaims <$50k:…

Price Action: At the time of writing, FTT was trading at $2.31, up 61% in the last 24 hours, according to data from Benzinga Pro.

Photo by Sergei Elagin on Shutterstock