- Sam Bankman-Fried (SBF) will be in the spotlight as his trial starts in New York.
- SBF is facing more than a decade in prison if he is found guilty for all eight crimes.
- The FTX Token will be in the spotlight during the trial.
The FTX Token (FTT) price has moved sideways in the past few days as investors wait for Sam Bankman-Fried’s (SBF) trial that kicks off on Tuesday. The token, which has no use today, was trading at $1.163, 30% above the highest point in September.
The biggest crypto news of this week will be SBF’s trial in New York. Prosecutors have charged him with at least eight counts following the collapse of his crypto empire in November 2022. Some of the crimes include money laundering, wire fraud, securities fraud, campaign funding violations, and commodities fraud.
The trial is expected to go on for a few weeks, according to a calendar released by the court. In all, most legal analysts believe that odds are stacked against him. For one, his biggest lieutenants like Caroline Elison and Gary Wang have pleaded guilty and are cooperating with prosecutors.
Gary was a co-founder of FTX while Caroline was the head of Alameda Research. In all, if found guilty of all crimes, Sam Bankman-Fried faces more than 100 years in prison. In reality, he will serve much less since this time will be served concurrently. Analysts expect him to serve between 10 and 20 years in prison.
Several cryptocurrency tokens will react mildly to the SBF trial. FTX Token will be one of them since it was created by SBF and was the one that led to his downfall. Other tokens to watch will be Solana, Aptos, Bitcoin, and Ethereum, which the company held in its portfolio.
FTX token will react mildly to the trial since investors don’t expect any new revelations. For one, Sam Bankman-Fried has already shed light on various parts of his empire through media interviews. Prosecutors have also released lengthy statements about the case.
FTT was the token that powered the FTX ecosystem. Like OKB and Huobi Tokens, its role was to reward users and provide them with discounts as they used the ecosystem. Prosecutors allege that SBF used Alameda Research to inflate the FTT token.
The FTT token has no use today. Nonetheless, it regularly has some short-squeezes when the new FTX management makes some announcements. The most recent news was that they are planning to sell FTX Europe. They are also planning to restart the FTX global operations, possibly with a new name.
In all, I believe that FTT is a high-risk crypto token to invest in because it has no utility and it is unclear whether the new management will incorporate it in the restart.
