The FTX Token (FTT/USD) price went vertical on Thursday as hopes that FTX could reopen. FTT jumped to a high of $2.9, which was more than 200% above the lowest level this year. This rally makes it one of the best-performing tokens this year.
New FTX hopes
One of the biggest FTX Token news this week is the rising hopes that FTX could reopen in the next few months. In a statement to a bankruptcy court, the company said that it had managed to find over $7.3 billion in cash and crypto assets. That was an increase of $800 million that it declared in January.
These funds are now being held by FTX until the company wins a final court approval for a creditor payout plan. This plan is expected to come by September this year.
Therefore, there is a possibility that the company will emerge from bankruptcy as soon as in 2024. According to Bloomberg, FTX intends to use money marked to repay customers to restart the exchange.
It has two more options. For one, the management could decide to raise fresh funding from investors to restart the firm. Alternatively, they could decide to close it completely.
Therefore, the FTX token surged because of a short squeeze after the new developments. However, in the long-term, I have concerns about the value of centralized exchange tokens, including Huobi Token and OKB.
The concern is that these tokens have no meaningful utility, other than providing discounts to holders. They are also highly centralized and their holdings is concentrated to a few people. In FTT’s case, FTX controlled the coin’s supply since it was the biggest holder. Justin Sun, the advisor of Huobi, has said that he is the biggest holder of Huobi token.
Huobi Token price forecast
The 4H chart shows that the FTT price went parabolic after the new revelations about FTX’s future. The token moved above the important resistance level at $1.7578, the highest point on March 18 and $2.03 (February 20 high).
The token remains above the 50-period moving average while oscillators have continued rising. Therefore, I suspect that the token will retreat in the coming days as investors target the support at $2.02, which is ~17% below the current level.
The post Here’s why FTX Token (FTT) soared and why it could slip by ~17.2% appeared first on Invezz.