FTT Bucks Market Turmoil as FTX Estate Revealed to Be Behind GBTC Sales

FTT was up 11% in the past 24 hours as the broader market tracked by CoinDesk 20 slumped 4%.

AccessTimeIconJan 23, 2024 at 8:45 a.m. UTC
Updated Mar 8, 2024 at 8:19 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Hopes of creditor repayments led to FTT, the tokens of the now-defunct FTX exchange, rising by 11%, with claims rising to 80 cents on the dollar.

FTT trading volumes jumped to $90 million from Sunday’s $22 million, CoinGecko data shows. The tokens allowed holders to access certain benefits on the Sam Bankman-Fried-owned FTX exchange before it collapsed in late 2022.

The tokens have largely remained a speculative instrument since FTX's collapse. But plans of an FTX restart, or creditor repayments, have previously caused brief price spikes.

The price action came after CoinDesk reported that FTX’s bankruptcy estate had dumped 22 million shares of Grayscale’s GBTC bitcoin exchange-traded fund (ETF). These were worth nearly $1 billion and accounted for almost half of all GBTC sales since the product went live earlier in January.

As such, claims on FTX deposits over $1 million have continued to increase. Market prices as of Jan.12 are up 2 points from the prior week.

The prices continue to increase in anticipation of an upcoming Claims Estimation Hearing, as per Claims Markets, which tracks bankruptcy claims.

FTT was among the only gainers on Tuesday morning. Bitcoin slumped 3.5% to $39,500 in Asian afternoon hours, while the CoinDesk 20, which tracks the highest tokens by market capitalization, was down nearly 5%.

Edited by Parikshit Mishra.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.

Read more about