In the past 24 hours, FTX’s (FTT) trading price has moved in the lower direction. The report shows that the price of FTT has plunged by 78% in the particular time period.
FTT Keeps Getting Pulled
The plunge has been recorded as the FTX exchange has announced that it has halted the withdrawal function on its platform.
Just as the FTX exchange officials announced that they were being acquired by Binance, the price of FTT experienced a slight surge.
However, the latest developments have continued pounding FTT further into the ground. It is not a good sign for FTT as the asset’s price is constantly getting pulled and the investors fear the worse outcome.
A look at the past 7-day performance of FTT shows that its price has dipped by 85% in the particular period.
The demise of the FTT started just as the reports started coming in about the leaked balance sheet belonging to the FTX exchange.
It showed that the exchange was allegedly backing up funds at the Alameda Research firm, the trading firm run by Sam Bankman-Fried.
It was revealed that the exchange had locked the FTT to other cryptocurrencies that were considered illiquid. This injected a great deal of panic among the investors who withdrew most of their investments.
Since the revelation, a great downfall has been recorded in the entire cryptocurrency market. The investors have been withdrawing their FTT holdings, which has continued pulling its trading price.
Uncertainty and Possible Crash to $0
Even at the moment, there is no firm news about how the FTX is trying to handle the situation. Things are very uncertain in the entire cryptocurrency market and the FTX exchange is at the center of it.
FTX.com is being considered by the majority of the cryptocurrency market as insolvent. Although reports have come in about Binance acquiring FTX to resolve its problems it hasn’t materialized yet.
With so much uncertainty being observed in the entire market, there are speculations rotating in the market about the possible crash of FTT.
The market observers are predicting that the trading price of FTT could fall all the way down to $0. If the price does not fall down to $0, then it could be somewhere close to that level.
FTT Community is bracing for a Major Impact
It has become a trend for the crypto industry to face one after another major crash. The crash of major crypto networks began from Terra back in May.
Since then, a number of firms linked with the Terra Network, such as the Celsius Network and the Three Arrow Capital (3AC) have filed for bankruptcy.
Prior to filing for bankruptcy, both major and other smaller firms halted the withdrawal services for their users.
Now, the FTX exchange has gone ahead and done the same so the entire FTT community is fearing the worst.