- FTX estate promised over 100% repayment, boosting FTT’s value above $2.
- FTT remains actively traded despite FTX’s fraudulent history and CEO’s conviction.
- FTT’s high centralization and questionable tokenomics make it an unattractive investment.
Ten days ago, the FTX estate, which is managing the bankrupt company’s proceedings, informed customers that they would receive more than 100% repayment. Following this announcement, the exchange token FTT from the defunct trading platform surged to over $2 per unit. Surprisingly, despite being associated with a failed crypto exchange, this token still maintains a market valuation of $535 million, which is perplexing given its lack of inherent value.
FTT remains actively traded on various exchange platforms, despite originating from FTX, a cryptocurrency exchange infamous for its fraudulent activities. Sam Bankman-Fried, the CEO of FTX, was convicted and sentenced to nearly 25 years for his involvement in the fraud. It is widely recognized that FTT played a significant role in facilitating FTX’s misconduct and contributed to the company’s collapse due to its substantial exposure to the token.
Despite the token’s role in market manipulation and deceptive financial strategies, FTT is still trading at $1.63. Additionally, FTT is highly centralized among its holders: the FTX estate controls 69.06% of the total supply, while Binance holds 9.51%. Although there are 30,384 owners, the top ten largest FTT wallets hold a staggering 87.85% of the entire supply. Even before this distribution, FTT’s tokenomics were questionable, resembling a pyramid scheme.
The distribution of FTT is almost laughable and worsened significantly when the contract deployer unlocked the remaining locked supply. The token’s fully diluted market cap stands at an absurd $535 million because the contract deployer associated with the so-called ‘locked funds’ dumped all remaining FTT tokens into circulation. Beyond its initial use within the FTX ecosystem, FTT is practically worthless, lacking any real-world utility and making it a significantly unattractive investment compared to other cryptocurrencies.
Nonetheless, some people might still invest in FTT, including speculators, high-risk traders, and hopeful investors betting that FTX’s bankruptcy proceedings and potential restructuring could somehow boost the token’s value. Amusingly, even Celsius Network’s CEL token holds a value of $0.61 per unit, and Voyager’s VGX is trading at $0.078. For years, numerous crypto projects have collapsed, yet inexplicably, the coins associated with these projects persist despite having no development or remaining use cases.
