FTT traders stand in a high-risk zone amid SBF’s plans to relaunch token

  • FTT ran to a double-digit rally after SBF endorsed the trader’s recovery plan view
  • On-chain gains and losses stayed in the same region

FTX tab [FTT] posted a 30.39% rise in less than 24 hours after embattled founder Sam Bankman-Fried (SBF) agreed to a turnaround plan. Their deal was in response to a proposal from CNBC cryptocurrency trader Ran Neuner.

Read FTT Price Prediction 2023-2024

The trader opined that issuing an entirely new FTT token and distributing it to creditors and depositors could help revive the token, which many had turned a blind eye to.

“I will be a witness”

However, FTT’s pricing wasn’t the only part of its ecosystem to respond. According to Santiment, the volume of the token increased by more than 1,300% in the last 24 hours. With an increase to $76.38 million, it meant that FTT gained strength in the market with an impressive number of transactions passing through its network.

Source: Feeling

Intense criticism followed Neuner’s opinion, with many pointing out that FTT was now a “Ponzi” and that there was no way of recovery. Others said his proposal was glaringly flawed. For one, author and cryptocurrency investor Mark Deeks sarcastically responded by saying:

“The best way to repair the damage caused by this Ponzi scheme is to bring in new investors to pay off the old ones.”

While most reactions to the proposal were in disagreement, the SBF made a U-turn in one of its initial decisions. The ex-CEO, on December 4, saying the US House Committee on Financial Services that could not testify about the events that led to the FTX exchange crash.

However, he reneged on his previous position. On December 9, he agreed to appear before the commission chaired by maxine waters.

FTT: Neither winner nor loser

The positive feedback from SBF could also have influenced the token’s spike. Also, the price increase might not be a usual market reaction or a pump and dump situation. This was because the Santiment data showed that FTT had real participants on the walk

According to the on-chain platform, FTT’s 24-hour active addresses rose to 414 at press time.

Regarding the 30-day market value to realized value (MVRV ratio), it went from -34.70% to -13.81% in one day. This implied that FTT buyers who accumulated after the crash confirmation made some profit from the token. Although the MVRV index rose, its stay in the negative region inferred that it was still overvalued.

FTT active addresses and MVRV ratio

Source: Feeling

Overall, the price increase failed to rescue FTT holders from their distressed assets. Santiment showed that the chain’s daily profit and loss were close to 1.28 million and 1.2 million, respectively. A simplification of this meant that only a few active addresses had been won.

In other developments, SBF and Binance CEO CZ were still locked in a war of words, with the former telling CZ, “You won.”

FTT daily on-chain gain and on-chain transaction loss

Source: Feeling