The value of FTX's controversial FTT token rose by more than 33% after the bankrupt company's new CEO, Robert J. Ray III, made it clear that he was dealing with the prospect of restarting the password exchange. On competitor Binance's exchange, the price of FTX tokens reached $2.41, marking a 73 per cent rise in the past seven days.

The price of FTX token (FTT) soars.

On Thursday, Ray, who oversaw the bankruptcy and restructuring of FTX business legends, showed that he had set up a task force to investigate the probability of another FTX.com release. The content of this message made the key headlines today, leading to an increase in the price of cryptocurrencies. According to statistics, speculative investors own this kind of alternative currency at this stage, because most serious investors have lost confidence long after the central exchange filed for bankruptcy in the United States.

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The importance of FTT in the collapse of FTX

The decline of FTX is driven by FTT in its most basic way. Like other local tokens, such cryptocurrencies are used in part as an incentive to give discounts to holders to facilitate exchange trading. This is the same as other local tokens, such as Binance's BNB and KuCoin's KCS. However, the application of FTT was not a problem until it was discovered that not only were tokens one of the important assets that make up FTX's balance sheet, but many tokens were also used by Alameda Research as collateral-making it easier for borrowers to get assets according to these login passwords.

FTT is now the 208th largest cryptocurrency in the world, with a market capitalization of $769 million, up 28% in the past 24 hours. The trading volume of tokens also surged, rising nearly 63% to $84 million, mainly by the Binance exchange. But even as the price of the FTT soared after the proactive news, the token fell nearly 97% from its all-time high of $84.18.