FTX Revival Proposal Supported by Sam Bankman-Fried Lifts FTT Token
FTT, the native cryptocurrency of the now-bankrupt FTX crypto exchange, surged Friday after the platform's founder Sam Bankman-Fried came out in support of an exchange revival plan proposed by a crypto influencer Ran Neuner.
"I continue to think that this would be a productive path for parties to explore! I *hope* that the teams in place will do so," Bankman-Fried tweeted in response to Neuner's proposal to restart FTX by issuing a new FTT token and giving it to creditors and depositors.
Neuner, the host of CNBC's Crypto Trader show that launched in 2020, recommended distributing 100% of profits to token holders, adding that the idea would reestablish FTX as a dominant player and make users whole.
"Neuner's proposal is equivalent to a debt restructuring plan," said Griffin Ardern, a volatility trader from crypto asset management firm Blofin. "Sam's support for the same seems to have revived hope among investors that they would get their funds back."
The FTT token surged as much as 47% to $1.97, the highest since Nov. 16, after Bankman-Fried's tweet at 08:18 UTC, TradingView data show.
FTX's troubles began early last month after a CoinDesk story showed sister concern Alameda Research holding large amounts of the illiquid FTT tokens, a sign of the unusually close relationship between the two entities.
In response, leading cryptocurrency exchange Binance announced the sale of its FTT token holdings, triggering a bank run-like situation at FTX and forcing it to halt customer withdrawals. On Nov. 11, FTX filed for Chapter 11 bankruptcy protections.
FTT crashed 94% to $1.31 in November, destroying billions of dollars in investor wealth.