The FTX Token has bounced again up to now few days even because the plot thickened for Sam Bankman-Fried (SBF). FTT rose to a excessive of $1.038, which was about 23% above the bottom degree on Thursday. So, what subsequent for the FTX Token?
Sam Bankman-Fried’s downfall continues
The largest story of the week was the continued downfall of Sam Bankman-Fried (SBF), the founding father of FTX. On Wednesday, his two senior-most officers in his empire pleaded responsible on prices introduced by American regulators. Additionally they determined to change into prosecution witnesses.
A day later, SBF landed in the US from the Bahamas. In his first day of look, Bankman was given a $250 million bond secured by his household house in California. He will even undergo a psychological wellness analysis and put on a GPS machine.
The occasions of the previous few weeks have marked one of many greatest downfalls within the monetary trade. And the more serious is but to occur. Analysts count on that Sam Bankman might be jailed for greater than 20 years. Mixed, the crimes he has been accused of carry a most of over 100 years.
It’s unclear why the FTX token has rallied by greater than 20% up to now 24 hours. A probable cause is that the token has now change into a meme coin. In addition to, FTX has already collapsed and the opportunity of it coming again to life are minimal.
Not like firms like Voyager Digital, there’s minimal risk that any firm will need to purchase the corporate out of chapter. For one, current revelations have confirmed that the corporate was poorly managed and used QuickBooks for accounting.
Is FTX Token a superb purchase?
The FTX Token has performed nicely up to now few days. Nevertheless, it’s nonetheless unattainable to advocate it as a strong funding. For one, it has no actual worth contemplating that the father or mother firm has gone bankrupt.
Additional, FTT is a extremely illiquid token that’s thinly traded. As such, this brings the danger of being a pump-and-dump token.
Turning to the two-hour chart, we see that the FTX token made a powerful rebound lately. Because it rose, it moved above the 25-day and 50-day transferring averages. The Relative Energy Index (RSI) moved above the impartial level.
Subsequently, there’s a chance that the FTT value will resume the bearish pattern as sellers goal the all-time low of $0.800.
