FTT Token, the native coin of the failed crypto exchange FTX, is experiencing a slide in today’s trading session. While it started the trading day negatively, it showed no recovery and further declined in price, recording up to an 8% loss and finding a spot in the top 3 losers in the sector.
Despite its previous week’s rally stemming from news of a potential FTX reopening, FTT has shown investors the other side of the palm by reversing its gains. However, the negative drop in FTT is not peculiar to it alone, as other cryptocurrencies have taken falls and show bearish price action.
Why Is FTT Token Crashing?
The drop in the prices of cryptocurrencies, including FTT, could be attributed to Bitcoin’s negative price action. The largest cryptocurrency by market cap was declining in dominance, but a surge in selling pressure reverted this trend and dragged the rest of the market with it.
Yesterday’s trade session saw a drop in Bitcoin price as it failed to hold the key support level at $29,200. This resulted in a free fall of Bitcoin, looking to identify the next support area to hold up.
Bitcoin finally found some support at $28,600, although some Altcoins had already suffered the tolling effects from the drop. The Bitcoin fear and greed index had also shifted to a neutral number of 52, indicating a possible sideways movement in the markets.
According to Coinmarketcap data, the FTT token trades at $1.9 from its 24-hour highs of $2.0751. While the news of FTX reopening could boost the FTT token price, it is far from conclusive and definite.
FTT intraday price retracement | Source: FTTUSD on TradingView
Updates On FTX Potential Exchange Reopening
As seen from a Bloomberg report, Tribe Capital, a venture capital company, has shown some interest in reviving the collapsed FTX exchange, which went bankrupt in November 2022.
According to the report, Tribe Capital, an FTX investor before the disastrous collapse, is considering a fresh volume of capital injection to kickstart the processes and bring the company back from its bankruptcy process.
While in the works of injecting $100 million of its venture-owned capital and limited partners, Tribe Capital is also considering piloting a $150 million fund-raising campaign to scale the process of reviving the exchange.
Arjun Sethi, the co-founder of Tribe Capital, also met with FTX, the unsecured creditor’s committee, to discuss an informal proposal to revive the FTX exchange, according to the report.
In a recent development, the FTX committee of unsecured creditors posted on their official Twitter handle that the entity is working with debtors to evaluate all options to reboot or sell the FTX exchange and create value for creditors. FTT Token continues to be on the traders’ watchlist as FTX developments unfold.
Featured Image from Istock, Chart from TradingView.com.