When Sam Bankman-Fried’s FTX exchange declared bankruptcy in November 2022, the crypto market was shaken.
With the man known as SBF facing trial on a series of charges, it looked like both FTX and its native FTT token would prove to be no more.
However, proposals to relaunch the beleaguered exchange have seen a growth of interest in the FTX token.
The company’s new CEO, John J Ray III, said that he was opening a bidding process for a new version of the exchange, and that interested parties should submit letters of intent.
CCN reached out to FTX for commentary, but did not receive a reply at the time of publishing.
But what is FTX Token (FTT)? How does FTX Token work? Let’s see what we can find out, and also take a look at some of the FTX Token Price Predictions that were being made as of August 2 2023.
Before it collapsed in November last year, FTX was the second-largest cryptocurrency exchange in the world.
It allowed people to not just trade in crypto, but in crypto futures. It promised to have enough features for experienced crypto traders but still be accessible enough for newcomers.
Founded by disgraced former billionaire Bankman-Fried in 2019, the platform managed to garner support from a range of celebrities, including American Football legend Tom Brady and US comedian Larry David.
Its native token, FTT, supported the FTX exchange.
Once FTX declared bankruptcy, FTT pretty much lost its entire purpose and became a de facto store of value.
The FTX Token used to pay for fees on the FTX crypto exchange. Now, though, it is a store of value. It can also be bought, sold, and traded on exchanges.
It is not yet clear what, if any, role it will have if FTX is resurrected.
Now, let’s examine some of the highlights and lowlights of the FTX Token price history . While we should never take past performance as an indicator of future results, knowing what the token has achieved can provide us with some very useful context if we want to make or interpret a FTX Token price prediction.
FTT first came onto the open market in the summer of 2019, when it was worth about $1.70. It experienced some slow growth over the following year and a half, closing 2020 at $5.77. In early 2021 it shot up, reaching a periodic high of $61.28 on May 11. Although the market took a downturn which saw FTT drop to below $25 in June, it recovered later on in the summer. On September 9, the token reached a high of $85.02, before it slid down to close the year at $38.31.
2022 was a bad year for crypto, and FTX had to take some of the blame for that. FTT had already dropped to around $22.14 on November 8 when disaster struck. Binance canceled a proposed takeover deal, and FTT collapsed to $3.15. FTX declared bankruptcy the next day and FTT fell to $2.49. The price kept falling and FTT closed the year at $0.8427. This meant it lost 97.8% of its value over the course of 12 months.
2023 did not start well for FTT, which fell to what was then an all-time low of $0.8245 on New Year’s Day. After that, though, it rose, breaking past $2 in the middle of January. FTT then dropped to just over $1 in March before spiking again to above $2 in April.
A slump became a crash in June. The news that the United States Securities and Exchange Commission (SEC) was to sue the Binance and Coinbase exchanges hit the market. By 10 June, following Crypto.com’s suspension of its US institutional arm, FTT was down to an all-time low of $0.7763.
It managed to make something of a recovery after that. It broke past the dollar in late June and, by August 2, it was worth about $1.35.
At that time, there were 328,895,104 FTT in circulation, representing the total supply. This gave it a market cap of around 455 million, making it the 216th-largest crypto by that metric.
FTT has enjoyed something of a recovery over the last couple of months or so. From its June 10 low, it has risen nearly 75%. However, it is down by more than 95% from the $30.95 it was worth on August 2 2023.
With that all said and done, let’s examine some of the FTX Token price predictions being made on August 2 2023. It is crucial to bear in mind that price forecasts, particularly for a potentially volatile asset like cryptocurrency, often turn out to be inaccurate. Additionally, please remember that many long-term crypto price predictions are generated using algorithms, which means they can change at any time.
First, CoinCodex had a short-term FTX Token price prediction that said the crypto would stay at around $1.35 until at least August 7 before climbing very slightly to $1.36 by September 1. The site’s technical analysis was bearish, with 26 indicators sending negative signals and just six making bullish ones.
In terms of other sites’ FTX Token price predictions for 2023, DigitalCoinPrice said it would reach $2.71. Bitnation had the crypto trading at $2.03, while PricePrediction.net thought it would stand at $1.65 this year.
Bitnation made an FTX Token price prediction that said it would get to $4.74, while PricePrediction.net had one of $3.80. DigitalCoinPrice was between the two, saying FTT would trade at $4.24 in two years time.
Moving on to a more long-term FTX Token price prediction for 2030, PricePrediction.net said it would trade at $23.45. DigitalCoinPrice thought it would stand at $13.99. Bitnation made an FTT price prediction that said it would reach $11.52 at the start of the next decade.
It is hard to tell. On one hand, it is pretty evident that FTT does not really do anything right now. As the native token of a moribund crypto exchange, it serves little of its original purpose. Not only that, but it has not recovered from its devastating collapse late last year.
On the other hand, though, there is always the potential that a new FTX could be created. While the revamped platform will have to deal with a pretty toxic brand, it could have some potential.
As ever with crypto, you will need to make sure you do your own research before deciding whether or not to invest in FTT.
No one can really tell right now. While the FTX Token crypto price predictions are largely positive, price predictions have a well-earned reputation for being wrong. Keep in mind, too, that prices can, and do, go down as well as up.
Before you decide whether or not to invest in FTX Token, you will have to do your own research, not only on FTT, but on other, related, coins and tokens such as Binance (BNB) or Cronos (CRO). Either way, you will also need to make sure that you never invest more money than you can afford to lose.
On August 2 2023, there were 328,895,104 FTT in circulation, representing the total supply.
It might do, but if it does, it will not be for a while. PricePrediction.net says it will get there in 2028, while DigitalCoinPrice and Bitnation say it will reach double figures the following year.
Bear in mind that FTT has not traded at over $10 since November 8 2022. This was when Binance pulled out of a rescue deal for the FTX exchange, which led to the platform declaring bankruptcy the following day.
At present, the FTT crypto is a store of value. If the FTX exchange is relaunched, this might change.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.