The departure of Binance CEO Changpeng Zhao has led to market uncertainties, and during this period, the native token of the defunct crypto exchange FTX, FTX Token (FTT), experienced a brief bull run. FTT’s value rose 28% in the past 48 hours, trading at $4.63 from $3.56.
The surge is linked to Binance’s $4.3 billion settlement with the U.S. Department of Justice, with the 10 largest wallets accumulating $12.8 million of FTT in 19 days, according to Santiment. FTT has seen 337% growth on the monthly chart, with a significant portion in the last 10 days, marking a 255% increase in market value compared to Bitcoin.
FTX’s recent asset liquidation and fund transfers across exchanges, totalling $474 million from Nov. 21–22, raised activity in the market, potentially impacting FTT’s price. This is part of FTX’s strategy to manage financial obligations and pave the way for FTX 2.0, aiming for a restart by Q2 2024. Despite FTT rallying after the Binance news, Binance’s BNB token experienced a 13% drop to $235, with 24-hour outflows surpassing $1 billion. Binance’s net outflows in seven days totalled $703.1 million.
In his debut statement on X (previously known as Twitter) as Binance’s newly appointed CEO, Richard Teng expressed confidence in the current strength of Binance’s foundation. Teng outlined three primary areas of focus for his initial efforts: rebuilding investor trust, fostering collaboration with regulators, and advancing the adoption of Web3 technologies.
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