Does FTX Token (FTT) have a future in crypto?
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The FTX Token (FTT) has had an interesting couple of weeks. Its fate remains unclear, but as things stand, its outlook isn’t good. FTX Trading was the world’s third-largest cryptocurrency exchange, worth $32 billion, with a token that peaked in September at $85.
Unfortunately for all involved, the platform is now suffering from a severe liquidity crisis with the value of its token dropping significantly. At time of writing, its assets have been liquidated and the FTT token has been trading under $2.
So, what happened and are there any ways other cryptos could avoid a similar fate?
What caused FTX to crash?
FTX trading was incredibly popular and well-liked by users and investors. Its native FTT offered high scalability and speed, and these aspects, combined with its reliability meant it was particularly popular with companies.
After peaking in September 2021, the FTT token, like thousands of others, entered the bear market in November as crypto winter began. In June this year, it seemed to find a new baseline, trading between $20 to $30.
Things started to unravel after a Coindesk report on the 2nd of November revealed close ties between FTX Trading and a company founded by FTX’s CEO, Sam Bankman-Fried, called Alameda research. This ignited a public Twitter feud between Bankman-Fried and Binance CEO Changpeng Zhao.
The result was Binance selling all its FTT holdings, worth around $500 million. The sale sparked a colossal market sell-off, with $6 billion being withdrawn form FTX in less than three days.
After a phone call between the two CEOs and a realization of the wider consequences of the situation, Binance said it would buy FTX to protect investors and users. However, just a couple of day later, after a look at FTX’s books, Binance backed out.
Since then, FTX CEO Bankman-Fried has been trying to find investors to keep the platform afloat and cover a liquidity shortfall of between six and eight billion dollars. Although this may be possible, most insiders and analysts are highly doubtful.
FTX trading has since filed for bankruptcy and seen its assets liquidated. The FTX website has currently has a somewhat ominous message posted on its front page:
“FTX is currently unable to process withdrawals. We strongly advise against depositing. Deposits of TRX, BTT, JST, SUN, and HT are disabled.”
Changpeng Zhao and other industry experts are warning of possible ‘cascading effects’ for the crypto sector and Bankman-Fried is currently under investigation for mishandling customer funds.
The broader industry may be affected, but some cryptos like BudBlockz will be immune
The future of FTX Trading remains unclear but is undeniably bleak. The broader cryptocurrency market may feel the effects. For example, those in a similar sector will likely see a decrease in user confidence due to the realization of how fast a once trusted, established, and huge company like FTX can fail. Even Binance, who stands to benefit most, will feel some effects.
However, some cryptos will remain unscathed as they offer completely different services or ensure longevity through diversification and community. A great example of a platform that has combined all these traits, is BudBlockz.
BudBlockz is an ecosystem and community that benefits from and supports the burgeoning cannabis sector. It has a decentralized e-commerce platform where users can use the native token, BLUNT, to buy, sell, and trade marijuana products.
As weed is a herb with a recorded history dating back three thousand years, and keeps growing more popular, it won’t suffer from a sudden loss of users. Additionally, the platform is still incredibly new with many new offerings in the pipeline. In fact, the token is still in presale stage and selling fast, with prices more than doubling, reflecting demand.
Moreover, BudBlockz will diversify its offerings and develop an interlinked ecosystem. For gamers, there will soon be the launched of a P2E gaming platform called BudBlockz Arcade where top players are rewarded with BLUNT.
There will also be the release of Ganja Guruz, a collection of 90s-inspired 10,000 NFTs. Ownership of one of these NFTs. To stay up to date with all things BudBlockz, join the telegram group and follow BudBlockz on Twitter.
BudBlockz token is available to purchase from the official webpage, https://budblockz.io