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The native token of bankrupt crypto exchange FTX continues to decline. Even though it is still in an upward trend, things are not good for people invested in FTT token. The FTX Token (FTT) price has faced a sharp downturn, losing 16% of its value in just 12 hours. This comes after a 92% rally over the past few days, fueled by optimism FTT, the native cryptocurrency of the FTX exchange, has fallen over 90% in the last week. Previously a top 50 cryptocurrency by market capitalization, FTT is currently Every member of the cryptocurrency community felt as though the past 48 hours had gone on forever as we watched Sam Bankman-Fried’s FTX and its native token Speculations of the FTX estate liquidating the native coin to refund creditors emerged after the court authorized the exchange’s repayment scheme. That has prompted Coinmarketcap to

Why is FTX's Native Token FTT Crashing? Understanding the Downturn

The native token of bankrupt crypto exchange FTX continues to decline. Even though it is still in an upward trend, things are not good for people invested in FTT token. But why is the FTT token crashing? Several factors are contributing to this significant downturn.

Recent FTT Price Plunge

The FTX Token (FTT) price has faced a sharp downturn, losing 16% of its value in just 12 hours. This comes after a 92% rally over the past few days, demonstrating the extreme volatility and uncertainty surrounding the token. This recent price action highlights the risks involved in holding FTT.

The Collapse of FTX and its Impact on FTT

FTT, the native cryptocurrency of the FTX exchange, has fallen over 90% in the last week. Previously a top 50 cryptocurrency by market capitalization, FTT is currently struggling to maintain any semblance of its former value. Every member of the cryptocurrency community felt as though the past 48 hours had gone on forever as we watched Sam Bankman-Fried’s FTX and its native token spiral downwards. The initial collapse of FTX directly triggered a loss of confidence in FTT, as its value was inherently tied to the exchange's success.

Speculation of FTT Liquidation by the FTX Estate

Speculations of the FTX estate liquidating the native coin to refund creditors emerged after the court authorized the exchange’s repayment scheme. That has prompted Coinmarketcap to issue warnings about the token. The possibility of a massive sell-off to repay creditors is putting immense downward pressure on FTT, as investors anticipate a significant increase in supply on the open market. This potential liquidation is a major driver behind the current crash.

Key Takeaways: Why FTT is Crashing

  • FTX Bankruptcy: The primary reason is the collapse of FTX, leading to a loss of trust and confidence in its native token.
  • Potential Liquidation: The FTX estate's plan to potentially liquidate FTT to repay creditors is creating significant selling pressure.
  • Market Volatility: The cryptocurrency market is inherently volatile, and FTT is experiencing extreme volatility due to the aforementioned issues.

In conclusion, the crash of FTT is a complex issue rooted in the downfall of FTX and the subsequent implications for its native token. Investors should exercise extreme caution when considering FTT, as its future remains highly uncertain.

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