FTX Token Soars by 113% Amid False Repayment Rumors, Fueling Market Frenzy
On Sunday, the FTX Token (FTT) shocked the crypto market by experiencing a massive price surge, skyrocketing to an intra-day high that represented an impressive 113% increase. This unexpected rally was triggered by widespread, yet false, rumors suggesting a possible $16 billion repayment plan from FTX.
The buzz around this potential windfall sent FTT holders into a frenzy, with many gearing up to sell their tokens and take advantage of the price jump. By the close of the day, FTT had settled at a still impressive 56% gain over its opening value, leaving many investors eager but uncertain about the token’s future. The surge was primarily driven by speculation, as the native FTX token is highly sensitive to market rumors, especially around creditor repayments. Anticipation grew as investors believed that FTX would begin repaying creditors starting October 1, potentially injecting up to $16 billion back into the market.
However, the optimism took a hit when Sunil, a key representative of FTX's largest creditors group, stepped in to set the record straight. In a tweet, he debunked the rumors, clarifying that the actual hearing regarding the repayment plan was scheduled for October 7, not October 1.
Despite the clarification, FTT's price surge had already triggered significant activity within the market. Active deposits reached a ten-month high as the repayment speculation spurred increased trading. Investors began transferring large amounts of FTT to exchanges, with hopes pinned on the possibility of a $19 billion influx into the market—fueling even more speculative buying.
This dramatic increase in deposit volumes reflects a mixture of emotions among investors. Many are driven by a fear of missing out on potential gains, while others show signs of caution, preparing to exit their positions when they feel the time is right. The heightened market activity signals both excitement and wariness, with investors walking a tightrope between seizing the opportunity and bracing for potential volatility.
While the repayment rumors may have been proven false, the FTX Token’s sudden price spike served as a reminder of how quickly market sentiment can shift, particularly in the volatile world of cryptocurrency.