FTX Valuation Raises Concerns Despite Bankruptcy

A crypto community member on X has questioned the authenticity of publicly available information concerning the defunct FTX cryptocurrency exchange

A member of the crypto community on X has expressed doubts about the validity of publicly available data on the defunct FTX cryptocurrency exchange and its native token, FTT. The crypto user highlighted FTX’s valuation in comparison to publicly traded companies, despite its bankruptcy.

According to market participants, FTX is still worth as much as these publically traded companies… pic.twitter.com/VHxbKnOWMa

Highlighting a poll on the ratio of American men to women involved in gambling, the crypto community member questioned the methodology used to conduct the exercise. The poll result showed that the ratio of American men to women involved in gambling is nearly 2:1, and a report attached to the poll noted that more men gamble because they are more likely to make impulsive decisions and take risks.

The user wondered if gender alone could explain the difference between market data and poll results. They then went on to compare the poll to FTX’s public data, which showed a surprising valuation for FTT, the exchange’s token. Using data from an unnamed prediction market, the user showed that FTT was trading at $2.03.

FTX Valuation Raises Concerns Despite Bankruptcy

Moreover, the crypto user’s shared data showed that FTT had made a 17.65% all-time profit despite FTX being bankrupt. The user highlighted a disclaimer on the platform stating that FTX bankruptcy proceedings were underway and that the FTT token may be liquidated to pay creditors, rendering it worthless.

Read also: FTX Repayments Set for Post-Election December 7th—Crypto Awaits a Rally

The crypto user’s posts notably aimed to highlight the potential inaccuracy of publicly displayed information, especially those obtained from the prediction markets. For example, the user showed how the displayed data valued FTX, in its bankrupt state, higher than some publicly traded companies, including Scholastic Corporation (SCHL), Southern Missouri Bancorp, Inc. (SMBC), Avid Bioservices, Inc (CDMO), and Horizon Bancorp, Inc. (HBNC).

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