FTX's FTT token surges 30% - Is it due to the Binance effect or FTX 2.0 reopening?

FTT sees momentary bull run

Amid uncertainties surrounding Changpeng "CZ" Zhao's departure as Binance CEO, FTX Token (FTT), the in-house cryptocurrency of FTX crypto exchange, experiences a surge in market value. FTT has soared by over 55% in the past 48 hours and is currently trading at $4.63, representing a 30% increase from $3.56.

Unexpected boost for FTT

Contrary to expectations that FTT would decline in price due to the FTX crypto exchange's relaunch (FTX 2.0), the token's value appears to have been boosted. On-chain analyst firm Santiment reports that the ten largest wallets have accumulated $12.8 million worth of FTT coins in just 19 days.

Impressive growth

FTT has recorded a remarkable 337% growth on the monthly chart, with a significant portion of these gains occurring in the last ten days. The top 10 whale wallets have been actively accumulating FTT during this period, resulting in a 255% increase in FTT's market value compared to Bitcoin.

Those who took a chance on $FTT continue to be rewarded, with a second rally for #FTX's native token coming after yesterday's #Binance news. Its price appears to have been boosted by the 10 largest wallets accumulating $12.8M worth of coins in 19 days. [source]

FTX's asset transfer triggers market activity

FTX's recent strategy of liquidating assets and transferring substantial funds across different exchanges has sparked increased activity in the cryptocurrency market. FTX and its affiliate, Alameda Research, executed an impressive transfer of assets amounting to $474 million.

Potential impact on FTT price

While the asset transfer could have a depreciating effect on the FTT price, data from Cointelegraph Markets Pro suggests that there is a good chance to establish a price bottom at current lows as the market digests the news.

Preparing for FTX 2.0

FTX's asset transfer is part of a larger effort to manage the exchange's financial obligations and pave the way for the upcoming "FTX 2.0" phase. The FTX team plans to relaunch the exchange by the second quarter of 2024. It is worth noting that FTT's price surge comes amidst Binance's $4.3 billion settlement with the United States Department of Justice.

BNB token takes a hit

On the other hand, Binance's BNB token has experienced a 13% drop to $235. Data from DefiLlama shows that Binance's 24-hour outflows exceeded $1 billion, while net outflows over seven days amounted to $703.1 million.

New Binance CEO's focus areas

Richard Teng, who replaced CZ as Binance's new CEO, stated in his introductory post on "X" (formerly Twitter) that the foundation of Binance is now stronger than ever. Teng's initial focus will be on reinstating investor confidence, collaborating with regulators, and driving Web3 adoption.