The cryptocurrency belonging to the defunct cryptocurrency exchange. ftx FTT/USD jumped dramatically on Sunday, dwarfing the gains made by the rest of the market.
What happened: FTT skyrocketed more than 60% in the last 24 hours, turning out to be the biggest gainer in the market by far. The coin's trading volume increased by a staggering 3,734%, and buying pressure catapulted it to values not seen since mid-March.
The rally challenged the broader market, which saw the total market capitalization contract by 1.89% in the last 24 hours.
The massive rise in FTT was unusual, given that the currency has no use at the time of writing. It lost over 90% of its market value after FTX's fraudulent activities were discovered, leading to the exchange's bankruptcy in fall 2022.
The disgraced founder of FTX Sam Bankman-Frito He was sentenced to 25 years in prison in early March for his role in the sensational fraud case.
See also: Maxine Waters says 'cryptocurrencies are inevitable', other countries 'far ahead' of US
Why is it important: FTT's strange jump coincided with rumors that FTX would start paying fraud victims on September 30.
However, this was categorically debunked by the FTX creditor activist. Sunil Kavuriwho said the next court hearing on the restructuring plan will be October 7.
If the plan receives a green signal, creditors with claims less than $50,000 could see distributions by the end of 2024. Those with larger claims could have to wait until the first or second quarter of 2025, Kavuri said.
price action: At the time of writing, FTT was trading at $2.31, up 61% in the last 24 hours, according to Benzinga Pro data.
Photo by Sergei Elagin on Shutterstock
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