- FTT token price has more than doubled in the past few weeks.
- The new FTX management is working to reboot the crypto exchange.
The FTX Token price jumped to the highest level since April as the new management worked to reboot the brand. FTT, the company’s token, jumped to a high of $1.8587, ~138% above the lowest level this year.
FTX to be rebooted
The biggest crypto news this week was that the new FTX management is planning to restart the company’s international business. In a statement, John Ray, the CEO, said that the company had started to solicit interested parties as it seeks to start offering the service.
Some of these parties are the company’s investors and service providers like banks. According to the WSJ, the company is seeking investors, who will fund the company. It is also open to forming joint ventures. One of the likely company that could partner with FTX is Figure, a firm in the industry.
At the same time, the company is considering compensating some of the customers using the funds it has collected during the restructuring process. Some of these customers will receive a stake in the newly formed entity.
Still, there are significant risks when rebooting FTX. First, the name FTX is highly toxic such and many people will avoid working with it. Many existing customers will also ignore it. As such, the company could decide to rebrand and emerge with a different name.
Second, it is unclear what the new management will do with the FTX Token. Like other exchange tokens, FTT had no major value. Instead, it was used to provide discounts to users. As such, with the SEC seeing these tokens as securities, there is a likelihood that the new management will do away with it.
Third, the FTX reboot is happening at a time when American regulators are focusing their ire on crypto companies. CFTC decided to sue Binance earlier this year. And the SEC filed lawsuits against Coinbase and Binance earlier this month. The regulator has criticized the business model used by exchanges, especially on staking. In a statement, Todd Phillips of the Roosevelt Institute said:
“Even if FTX restarts abroad and is only facilitating trades between non-Americans, if the SEC determines that a token traded on the exchange is a U.S. security, that could impact its ability to operate.”
FTX Token FTT price prediction
The 4H chart shows that the FTT price has gone parabolic in the past few weeks. It has soared from a low of $0.7727 this month to a high of $1.8673. Along the way, the token jumped above the key resistance point at $1.1955, the highest point on June 8th. It remains above all moving averages.
The token’s oscillators like the Relative Strength Index (RSI) and the MACD have moved above the overbought level. Therefore, there is a likelihood that the token will continue rising as buyers target the key resistance point at $2. In the long term, however, the token will likely resume the bearish trend.
