The native cryptocurrency the FTX exchange utilizes is FTX Token (FTT/USD). It is a utility token that enables users to receive discounts.
A cryptocurrency exchange called FTX is powered by the FTX token and provides a wide range of products, including futures, options, volatility products, and leveraged tokens.
Uncertainty for FTX’s future after Binance’s acquisition
According to the most recent FTX token news, Binance, the largest cryptocurrency exchange in the world by volume, has agreed to buy FTX, one of its key rivals.
Changpeng “CZ” Zhao, the CEO of Binance, announced the agreement on Twitter and stated that a non-binding letter of intent was signed between the two exchanges.
FTT is the native cryptocurrency behind the FTX exchange and lost most of its value after Binance announced the plans to acquire the company.
We talked about the news’s aggressive response. Sam Bankman-Fried, however, maintains that the acquisition of FTX by Binance places the cryptocurrency exchange in capable hands.
“We expect FTT to be highly volatile in the coming days as things develop,” said Zhao in his tweet.
This acquisition only affects the non-US business of FTX, where FTX.US will remain independent of Binance.
In addition, financial documents about Alameda Research were released, revealing that the majority of Alameda’s assets were illiquid or locked cryptocurrencies, including FTX Token (FTT), Solana (SOL/USD), and Serum (SRM/USD), several of which Sam Bankman-Fried has a position in.
Remember that SRM is the digital currency from the decentralized exchange that Bankman-Fried co-founded. We also discussed Jim Cramer’s viewpoint on this development as the host of CNBC’s “Mad Money.”
Should you buy FTX Token (FTT)?
On November 9, 2022, FTX Token (FTT) had a value of $4.137.
The FTX Token (FTT) cryptocurrency reached its all-time high on September 9, 2021, when its value rose to $84.18. The cryptocurrency’s value increased by $80.043, or 1,935%, at its all-time high.
According to FTX Token’s (FTT) 7-day performance, the high point was $25.78, and the low point was $4.01. We can see a $21.77 (or 85%) drop.
Going over the 24-hour performance, the cryptocurrency saw its high point at $19.24, while the low point was at $3.12. This indicates a $16.12 decrease or 84%.
We can also see some recovery, as from $3.12, the token increased again to $4.137, a $1.017 increase, or 32%.
In the short term, purchasing FTT might not be the best decision. The cryptocurrency might rebound in the long run.
This pessimistic prognosis might be the product of panic selling; nevertheless, once the market has stabilized, FTT can increase its value back to $10 by the end of November 2022 and continue to rise over the next few months, possibly even to $20.