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FTX Token crashes after repayment plan approval: is this the end for FTT?

Author: Content Editor
FTX Token (FTT) has been in the spotlight due to bankruptcy proceedings with US regulators. On October 7, the US court approved FTX's repayment plan, which would refund former customers 119% of their investments before the insolvency filing. However, the ruling caused FTT to plummet from $3.060 to $2.26. FTT experienced a brief surge to $3.422 as investors awaited the court's decision, but bears took over after approval of the plan. FTT is currently trading at $2.26, down around 35% in the past two days. Technical indicators suggest bearish dominance and there are speculations of the FTX estate liquidating FTT to refund creditors. Coinmarketcap has warned traders about interacting with FTT as it no longer has utility. The potential liquidation of FTT could lead to massive selling pressure and price crashes. FTT has lost nearly 8% of its value in the past 24 hours and a 65% decline in daily trading volume suggests weakness. However, increased activity as the exchange settles with creditors globally could keep FTT afloat in the near term.

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