The crypto traders assembled a few years ago aiming to streamline the issues with the traditional crypto exchanges. Further, they decided to lauch their platform which was named FTX. It offered some exceptional features like clawback prevention, a centralized collateral pool and universal stablecoin settlement. Despite being the first fully centralized & regulated crypto exchange, the FTX collapsed in no time.
What led to such a disaster? Will the customers get back their funds?
The FTX crash now has become a shining example of how a well-maintained and smooth-functioning crypto exchange went down to nuts in minutes. The empire built by Sam Bankman-Fried was once compared to the gaints like J.P Morgan & Warren Buffett but fell short of $8 billion, compelling the platform to file for bankruptcy. Furthermore, FTX wallets have been left with nothing in an apparent hack, stealing more than $600 million.
Why is the FTX Token Going Down-FTT Collapse Explained
FTX token (FTT) price has almost close to hitting a 3-digit figure during the 2021 bull run and was trading within the normal ranges until a report emerged to shake the empire to its roots. As per the report, FTX’s sister concern Alameda Research comprised a majority of FTT holdings which raised concerns over the platform’s financial health.
A major sell-off was sparked when Binance CEO, Changpeng Zhao, announced the liquidation of all FTT tokens held with him. Users rushed to FTX and withdrew more than $1.2 billion from the exchange. The native token FTT also witnessed a major crash of more than 80% dragging the price from $25 to $2 and is trading below this level at the moment.
Read: FTX Collapse Explained
FTX Token Price Analysis
The daily chart of FTT price is extremely terrifying as the drop resembles that of the unfamous Terra LUNA collapse. The price underwent a free fall and marked bottom just above a dollar. However, the sell-off appears to have halted a bit as the selling pressure is very close to reviving, paving way for the token to elevate its value to some extent.
The FTT price is currently holding the lower 0 FIB levels at around $1.3 as the bulls have held the price above these values. Meanwhile, the next target is a little distinct at around $7.2 which may require extreme strength and buying volume to propel high.
On the other hand, the RSI has plateaued, indicating a drop in the selling pressure and the token could be accumulating strength to rebound firmly. The MACD is also close to flash bullish signals as the cross-over may be expected in a couple of days ahead, until the weekend. While most of the indicators signal the revival of a bullish trend, FTT price is expected to lay down a decent upswing, but may certainly carry the fate of LUNA or LUNC by maintaining a consolidated trend.
Additional Read: Why is Trust Wallet Token Price rising today?
FTX Technical Analysis
- The RSI has dropped from 66.54 to 15.45 at the moment and is maintaining a stagnant trend. This indicates the price is accumulating gains to withstand bearish actions in case the price ignites a rebound.
- MACD continues to remain within bearish levels at around -6.14 slashing from the neutral ranges at 0.1. The MACD line is heading to cross the signal line, which may further ignite a notable rebound ahead
- The strength indicator ADX(Average Directional Index) jumped from 18.39 to a surge high of 49.05 at the moment indicating the rally is gaining acute strength and may maintain a similar trend as before.
- The ATR or Average True Range is a volatility indicator and the asst appears to be extremely volatile at the moment hence the price action may be extreme regardless of the direction
- The Bull-bear power had dropped to -29 favouring the bulls with a minor upswing raised significantly. Hence a short-term bounce could be fast approaching.
Read more: Crypto Technical Analysis
FTT Token Delisted on Major Exchanges
As the The FTX crisis has created major turmoil within the crypto space and many platforms have come forward to delist the token. CoinDCX also has delisted the token as it no longer met the quality level, protecting the interest of the users. The trading pairs FTT/BNB, FTT/INR, FTT/BTC and FTT/USDT are no longer functional with effect from November 14, 2022, at 06; 00 pm. However, the users can continue to trade FTT against BUSD.
Latest News on FTX Collapse
- Sam Bankman-Fried in a series of tweets explained what has happened till now and his goals in the coming days. He still wishes to restart the platform, although he may not be welcomed by many in the crypto space.
— SBF (@SBF_FTX) November 14, 2022
- The FTX collapse led to the ripple of fallouts as the crypto space witnessed 4th biggest Bitcoin withdrawals in recent years as all exchange balance drops -72.9K BTC.
Unsurprisingly the FTX collapse also led to general paranoia and to people getting their #bitcoin off of exchanges. This was the 4th biggest withdrawal event in recent years. pic.twitter.com/zhdei0oOwR
— Lark Davis (@TheCryptoLark) November 16, 2022