FTT plunged by 90%, wiping out over $2.6 billion
FTX’s native utility token, FTT, has since collapsed alongside the centralized cryptocurrency exchange. When the CEO of FTX’s sister company Alameda Research offered to buy Binance’s FTT holdings at $22, FTT’s price slid from $24.01 on November 6 to $22.27 on November 7. On the other hand, trading volume spiked from an average of $0.1 billion or less on November 6 and before, to over $1.6 billion on November 7 alone.
By November 8, the day FTX halted withdrawals, the price of FTT had dropped further to $22.08, sitting just above Alameda’s offer price. Meanwhile, FTT’s market capitalization was recorded at $2.9 billion.
Less than a week later on November 13, FTT had broken well below the $22 mark and reached $2.10, losing a significant $2.6 billion in market capitalization (-90.4%) to reach $0.2 billion. Trading volume had similarly fallen from a daily average of $1.9 billion between November 7 to 12, to $0.4 billion on November 13, in the wake of FTX’s bankruptcy filing on November 11.
In comparison, FTT’s all-time high (ATH) price was recorded at $84.18 on September 09, 2021, and the ATH market capitalization stood at $9.7 billion on September 10, 2021.
What is the state of FTT today?
As at November 22, the price of FTT is at $1.26, with trading volume of $13.3 million despite being subject to scrutiny amid FTX’s bankruptcy proceedings.
FTT can still be traded on some cryptocurrency exchanges, even though FTX has filed for Chapter 11 bankruptcy. Popular trading pairs include: FTT/USD, FTT/CAD, FTT/AUD, FTT/GBP, FTT/INR, and FTT/PHP.
FTX saw over $7.5 billion in withdrawals
Between November 2 to 8, FTX experienced an outflow of over $7.5 billion in withdrawals, as users rushed for the exits. The balances of centralized cryptocurrency exchanges also decreased collectively by $20.7 billion, from $123.6 billion on November 2 to $102.8 billion on November 13.
Methodology
The study is based on CoinGecko data for FTT’s price, market capitalization and trading volume. CoinGecko shows FTT market capitalization to be $0 from November 14, 2022 onwards, as the market capitalization cannot be ascertained due to the irregular movement of tokens from the deployer contract on November 13, as well as the potential exploit of FTX wallets from the alleged FTX hack on November 11.
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Looking for more information on what happened with FTX? Check out this one we did on Which countries are most impacted by FTX's collapse?
Yuqian is a cryptocurrency writer and marketer who specializes in mainstream cryptocurrency insights. She's especially fascinated by the philosophical and socioeconomic aspects of crypto and also goes by the name of Q. She holds a Bachelor of Social Sciences with Honors from the National University of Singapore. Follow the author on Twitter @solosbrqt
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