FTX Token (FTT) Surges 28.42%: What’s Driving the Price?

• The value of FTX’s exchange token, FTT, has seen a 28.42% increase since Jan. 9, 2023, and currently sits above the $1 range.
• FTT’s levels of ownership concentration are extremely high, with a single address controlling 59.55% of the circulating supply.
• The most active crypto exchanges trading FTT currently include Binance, Mexc Global, Kucoin, Gate.io, and Sushiswap.

Amidst the ongoing FTX bankruptcy case and fraud charges against co-founder Sam Bankman-Fried, the value of the exchange’s token, FTX Token (FTT), has seen a significant surge. Since Jan. 9, 2023, FTT has risen 28.42% and is currently holding above the $1 range at $1.22 per coin as of 9:30 a.m. Eastern Time on Jan. 11, 2023.

The reason for this increase in value is unclear, as FTT’s tokenomics are tied to the now-defunct FTX exchange and its potential future growth. FTT’s levels of ownership concentration are extremely high, with a single address controlling 59.55% of the entire FTT supply. Additionally, an unknown hacker holds 45.85 million FTT tokens, comprising 13.94% of the circulating supply. Another unknown address holds 10 million FTT, or 3.04% of the total supply.

FTT’s value fell below the $1 range on Dec. 19, 2022, and remained below that threshold until a spike on Jan. 9, 2023. Since the FTT token’s all-time low 12 days ago on Dec. 30, 2022, when it reached $0.827 per unit, it has risen 45.8%. However, it remains 98.6% below its all-time high of $59.06 per unit, set on Mar. 27, 2021.

The most active crypto exchanges trading FTT currently include Binance, Mexc Global, Kucoin, Gate.io, and Sushiswap. On Sushiswap alone, there is roughly $104,496 in FTT trades paired against wrapped ethereum (WETH). The overall global trading volume for FTT is approximately $23.81 million among all exchanges worldwide.

It is unclear why FTT has seen such a surge in value, though some speculate that it may be due to the potential for the exchange to be revived or for FTX tokens to be listed on other exchanges. It is also possible that investors are taking advantage of the current situation and buying up FTT tokens in anticipation of a potential increase in their value once the bankruptcy proceedings and fraud charges against Sam Bankman-Fried are resolved. Whatever the case may be, FTT’s value will likely remain volatile in the coming weeks as investors continue to assess the situation.