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FTX token: FTT rises 20% after SBF tweet on Ran Neuner FTX revival proposal

By Alara Jordan

16:13, 9 December 2022

FTT digital token
FTT plunged by more than 80% on 8 November after rumours began swirling around the crypto exchange’s potential liquidity issues – Photo: Shutterstock

A Twitter exchange between the CNBC crypto host Ran Neunber and FTX’s currently disgraced former chief executive, Sam Bankman-Fried, has sent the price of the FTT token surging by 20%.

Bankman-Fried responded to an idea proposed by Neunber to help re–establish FTX and issue a new native token that could help raise funds and pay back creditors, which the founder of the collapsed crypto exchange said would be “a productive path for parties to explore.”

Bankman-Fried added: "I *hope* that the teams in place will do so.”

The former CEO has remained active on social media after the collapse of FTX and has previously promised to “make customers whole again” amid the wreckage of what was once the third-largest cryptocurrency exchange.

Earlier this month, FTX experienced a somewhat bank-run moment after the attempted withdrawal of customer funds worth nearly $5bn in just 24 hours; the exchange did not have enough liquidity to fulfil the withdrawals. 

The move comes after Binance CEO Changpeng “CZ” Zhao said on 6 November that he would liquidate the firms entire holdings of FTT, as well as a news report which highlighted the close proximity of funds between FTX and its sister firm Alameda Research, inevitably leading to immense uncertainty around FTX.

ETH/USD

3,448.29 Price
-1.970% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

DOGE/USD

0.14 Price
-2.650% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

XRP/USD

0.61 Price
+1.000% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

BTC/USD

67,552.35 Price
-0.550% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

CZ had offered a buy out solution for FTX, but backed out of the deal shortly afterwards after stating that the issues were beyond his “control or ability to help.”

FTT to USD

FTX’s native token plunged by more than 80% on 8 November after rumours began swirling around the crypto exchange’s potential liquidity issues, with the token losing most of its value that same day.

FTT dropped from around $22 on 8 November to around $5, wiping out more than $2bn in 24 hours. At the time of writing, FTT is changing hands at $1.64 and is up around 20% in the last 24 hours.

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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