FTT has risen in price more than 200% from its post-bankruptcy low.
The token is 96% from its all-time high price.
From the Greek myth “Pandora’s Box” arises the phrase “hope is the last thing that is lost”, which has been used countless times and in all kinds of contexts. The digital asset market is no exception either.
And if not, ask the people who are still buying FTX Token (FTT), the digital asset issued by the bankrupt company FTX, in the hope that it will be resurrected.
As CriptoNoticias has reported, FTX was one of the largest bitcoin (BTC) and cryptocurrency exchanges on the market that declared bankruptcy in November 2022.
Following this, FTT price plummeted from $26.50 to below $1.
However, after hitting its all-time low of $0.77 in June 2023, to the surprise of many, The price of the asset rose more than 260%. Meanwhile, the trade volume exceeded 100 million dollars on January 2.
Perhaps the most curious thing is that, after the bankruptcy of the exchange, the token lacks any usefulness, but many traders continue to buy it as a bet, in the hope that it will resurrect from the darkest, or, rather, from its lowest prices. .
In fact, in CoinMarketCap It is noted: “The FTT token no longer has any use and may be liquidated by the estate to pay creditors. “Proceed with caution.”
In this context, some traders shared their predictions for FTT and They even project prices above $20 in the short term.
The trader known in X as UniChartz points out: “The ascending trend line supports the bullish structure, with an upside potential towards $4.00.”
To justify his analysis, he shares the graph where the figure of a pennant is formed in the FTT price.
It is a technical analysis indicator that predicts strong bullish movements of an assetsomething that, a priori, seems difficult to happen with FTT.
For Javon Marksfinancial market analyst known in X, The token could experience a recovery and reach $20, a level that has not been seen since the exchange was operational.
From these analyzes the question arises: do they really know what FTT is or are they betting on a miraculous rise in prices?
By the way, on October 13, 2023, Paulo Márquez, a CriptoNoticias journalist, referred to FTT purchases and explained that there is a class of traders who unearths assets from the depths. “They trade tokens that have been dead for months, if not years, in abandoned, illiquid sinks,” he commented, while investigating the behaviors that drive these purchases.
What motivates FTT purchases?
In recent days, it was reported that FTX EU, the European branch of the defunct exchange, was acquired by Backpack Exchange. According to the announcement, the firm will be responsible for managing the distribution of claims arising from the bankruptcy.
Armani Ferrante, CEO of Backpack Exchange, declared: “Restitution to customers is a crucial step in rebuilding trust in the industry, and Backpack is committed to returning FTX EU customer funds as quickly and safely as possible.”
Perhaps it is this type of news that arouses interest and motivates traders to make a bet and buy FTT.
In the previously mentioned article, Márquez presented some reasons that could encourage investors to lean towards this type of assets.
One of them is the possibility that a group of people is implementing the “pump and dump”, a market manipulation scheme to increase the price of an asset and then sell it en masse. Although it is not a common practice, there are cases such as that of LOOM, whose price in 2023 would have been manipulated on Upbit, a Korean exchange.
Nor should we rule out those investors who bought the asset during its boom and are now lamenting the unrealized gains. They are those who are not yet capable of assuming the losses and could make these purchases to implement the strategy dollar-cost averaging (DCA).
The method consists of establishing a recurring purchase plan, of the same amount, in a previously defined period of time. All this, regardless of the price of the acquisitions.
The truth is that beyond any type of speculation about the behavior and motivations of traders, it is clear, once again, that hope is the last thing that is lost.
