Dream

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when

Gains

The dream of a revived FTX exchange evaporates, triggering a massive sell-off of its native token, FTT. According to <a class="editor-rtfLink" href="https://twitter.com/KaikoData/status/1754510437905997833" target="_blank" rel="noopener nofollow">Kaiko</a>, on February 5, FTT, the now utility-free currency of the defunct exchange, plummeted over 30% last week, erasing much of its recent gains fueled by speculation of an FTX comeback.&nbsp; 
<img loading="lazy" decoding="async" class="size-full wp-image-573493" src="https://www.newsbtc.com/wp-content/uploads/2024/02/GFkdFE8XUAAqW3m.jpg?resize=1024%2C478" alt="FTT price collapse | Source: Kaiko via X" width="1024" height="478" srcset="https://www.newsbtc.com/wp-content/uploads/2024/02/GFkdFE8XUAAqW3m.jpg?resize=1024%2C478?w=1474 1474w, https://www.newsbtc.com/wp-content/uploads/2024/02/GFkdFE8XUAAqW3m.jpg?resize=1024%2C478?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/02/GFkdFE8XUAAqW3m.jpg?resize=1024%2C478?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/02/GFkdFE8XUAAqW3m.jpg?resize=1024%2C478?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/02/GFkdFE8XUAAqW3m.jpg?resize=1024%2C478?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/02/GFkdFE8XUAAqW3m.jpg?resize=1024%2C478?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
<h2 id="ftx-won-t-resume-operations">FTX Won’t Resume Operations</h2> 
The worrying drop follows reports that the bankrupt exchange, once led by Sam Bankman-Fried, is unlikely to resume operations. Notably, the news comes despite a glimmer of hope for FTX customers.&nbsp; 
At a recent court hearing, the exchange’s representatives claimed it expects to repay its users fully. However, repayments would be based on the worth of their assets during FTX’s bankruptcy.&nbsp; 
It should be noted that by the time FTX went bankrupt in late 2022, crypto assets were at the last phase of a bear market, with prices plunging to multi-month lows. Bitcoin, the world’s largest crypto asset, was trading below $20,000. After FTX collapsed, prices crashed below $16,000 before bouncing back strongly.&nbsp; 
Following a court hearing in late January, FTX lawyer Andrew Dietderich, in a now-deleted YouTube video, said the exchange wouldn’t be looking to <a href="https://www.newsbtc.com/ftx/ftt-flies-45-on-rumors-of-ftx-planned-relaunch/" target="_blank" rel="noopener ">relaunch</a> due to the absence of buyers. For this reason, the exchange is looking at allowing creditors to obtain approvals from investors seeking repayments.&nbsp; 
Claimants impacted, given the new conditions and trajectory the exchange plans to take, have to provide sufficient proof that they held assets in FTX before it collapsed.&nbsp; 
This new detail raises concerns for thousands, if not hundreds of thousands, of claimants, who argue that the actual value of their assets lies at the pre-crash level. On average, Bitcoin and top coins were roughly double digits higher than the November 2022 lows. 
<h2 id="ftt-is-free-falling-reverses-november-gains">FTT Is Free Falling, Reverses November Gains</h2> 
For the better part of 2023, FTT prices recovered steadily. To demonstrate, since November 2023, FTT prices have risen by over 300%. The encouraging surge was fueled solely by the possibility of FTX 2.0 launching and implementing a new management model.&nbsp; 
With that hope fading, FTT appears to be facing a harsh reality check. Questions about its utility are being asked since FTT served as a critical cog in the FTX ecosystem when the exchange operated normally.&nbsp; <a href="https://www.tradingview.com/x/9p1XTcLM/" rel="nofollow"><img loading="lazy" decoding="async" class="size-full" src="https://www.tradingview.com/x/9p1XTcLM/" alt="FTT price trending downward on the daily chart | Source: FTTUSDT on Binance, TradingView" width="1233" height="592"></a> 
When writing on February 5, FTT changes hands at around $1.7. Looking at price charts, bears are in control, completely reversing the gains of November 2023. As it is, $0.95 remains to be a key support line.&nbsp;

FTT Crashes 30% As FTX Relaunch Hopes Fade: Is the Dream Over?

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