FTX Token (FTT) Attempts Recovery, but Is It Enough?
Timothy St. John • 2 min read
Cryptocurrency token FTX (FTT) fell 71% on Wednesday after being bought up by rival crypto exchange platform Binance. The result across the market was a widespread price drop, acting like a shockwave through the entire industry. Today, FTX Token is up 22.19%, but is it managing to recover from the massive loss earlier in the week?
A Long Way to Go
FTX Token climbed to $3.41 (FTT/USD) this morning and continues to rise. That is good news for investors who are hoping for a recovery, but the coin is still a long way from making back what it lost.
Wednesday’s drop was the most significant loss for the coin all year, and it took the coin from $25.72 to $3.96 very quickly. The coin then fell further from there, proving that the damage had not yet finished. It may be climbing back up today, but the coin has not even made back its losses from the secondary fallout from the initial crash.
Will FTT Ever Recover?
Analysts are not hopeful that the coin will make any kind of major recovery. If Binance decides to rework the FTX platform, there may be some possibility of a resurgence, but it is also possible that their buyout was simply a way to take a competitor off the market. If that is so, then there is no real hope for FTX to ever regain what it lost. Binance may not have much interest in reviving FTX, but we will have to wait and see what their plans are.
Currently, FTX trading is down 14% from yesterday, with trades totaling 838 million over the last 24 hours. This coin is ranked #74 overall and is quickly losing consumer confidence. While some recovery is happening, it is so minimal at this point that investors are probably better off counting their losses, certainly for the short term.
Anyone hoping for better sell prices than what they are getting today may want to see what happens over the weekend, but there is a risk that the price will turn again and head back down following further industry analysis.