Former FTX CEO Sam Bankman-Fried has blown up an altcoin project with his support of crypto phenom Ran Neuner’s revival idea. The price rallied around 50% amid the recession in the market.
Sam Bankman-Fried triggered the rally of this altcoin project from Twitter
The former CEO moved the market on Friday after backing a stock market boost plan proposed by crypto phenom Ran Neuner. Neuner was proposing to reboot FTX by issuing a new FTT token. The phenomenon with 679 thousand Twitter followers wrote on Twitter on December 9:
Run the FTX exchange. Issue a new FTT token. Distribute the token to the creditors/depositors. Accrue 100% of profits to token holders. It will be the world’s largest exchange and users will be made more than a whole.
I continue to think that this would be a productive path for parties to explore! I *hope* that the teams in place will do so.
— SBF (@SBF_FTX) December 9, 2022
Then the answer that moved the market came from Sam Bankman-Fried. The former CEO hinted that the current exchange team should specifically do this:
I keep thinking this will be a fruitful way for parties to explore! I hope the teams in place do that.
FTX Token (FTT) skyrocketed to $2 within hours
The stock token rallied around 50% shortly after the tweets. It jumped from $1.33 to $1.91, an intraday low. The sudden price action is currently continuing with the 30% correction. FTX Token (FTT) is trading around $1.6 while keeping its last 24-hour gains at 20%.
In details, Neuner, host of CNBC’s Crypto Trader show, which launched in 2020, recommended that 100% of the profits be distributed to token holders. Nu added that the idea would re-establish FTX as a dominant player and integrate users. “Neuner’s proposal is equivalent to a debt restructuring plan,” says Griffin Ardern, a volatility trader at crypto asset management firm Blofin. He also adds, “Sam’s support for this seems to have revived hopes among investors that they will get their funds back.”
FTX crisis continues to affect
FTX’s bankruptcy began earlier last month after a CoinDesk report revealed that its sister company, Alameda Research, was holding large amounts of illiquid FTT. In response, Binance announced the sale of its FTT token reserve, triggering a withdrawal crisis in FTX. Thus, it forced FTX to stop customers’ withdrawals. As quoted by cryptokoin.com, FTX filed for Chapter 11 bankruptcy protection on November 11.
Later, the FTT price fell 94% to $1.31 in November. Billions of dollars of investor wealth destroyed. FTX’s failure fueled a series of high-profile bankruptcies in the days to come. Credit platform BlockFi was one of those companies. As a result, many industry heavyweights have described crypto as the Lehman moment.
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