FTX Token (FTT) Surges 72% in 24 Hours Despite Exchange's Collapse

FTX Token (FTT) experienced around 72% price action in the past 24 hours from a $1.58 low to a $2.72 high.

The price of FTX Token (FTT) experienced a surge of around 72% in the past 24 hours, moving from a low of $1.58 to a high of $2.72. At 8:00 AM UTC today, the token was still able to retain 34% of its gains, trading at $2.15.

The surge in FTT’s price was accompanied by an astronomical 1,634% increase in trading volume during the same period. Over $360.76 million worth of the token moved across DeFi wallet addresses.

This also led to a substantial improvement in the digital asset’s volume/market cap rate, which now stands at 50.63%, indicating a high degree of liquidity for the token.

The latest developments also elevated the market cap of FTT’s 328.9 million circulating supply to over $707 million.

Moreover, the token has gone up by 59% in a week, 65% in a month, and 90% in a year.

Despite its recent rebound, FTT is still 97% down from its all-time high three years ago.

Meanwhile, rumors about the possible $16 billion repayment of FTX to investors continue to circulate within the crypto community.

According to reports, several publications cited crypto influencers, particularly Crypto Rover, as the source of the information.

The speculations about the possible reinvestment of the said funds into the crypto market have fueled positive investor sentiment.

However, the parties involved in the FTX case, including the bankruptcy estate of the exchange, are yet to issue confirmation about the repayment plans.

As per recent court filings, official statements, and people knowledgeable in the matter, a committee composed of the firm’s unsecured creditors will convene in October 7.

The goal of the party is to vote and arrive at a consensus regarding the bankrupted company’s payment plan as well as date value of creditor claims and distributions.

To date, the Delaware bankruptcy court instructed FTX to deposit 18% of its assets seized by the Department of Justice. The funds capped at $230 million will be consolidated under a “Preferred Shareholder Remission Fund,” which will be used to repay investors holding equity in the firm before its closure.

The scale hangs in balance for next week’s voting process as the committee of unsecured investors will decide whether they will be repaid in crypto assets or the US dollar equivalent of their investments.