Investor Trust in Exchange Tokens Sees Resurgence, Overcoming FTX Scandal Shadows

Binance BNB FTX Bankruptcy
Last updated:
Author
Ruholamin Haqshanas
Author Categories
About Author

Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more

Crypto exchange tokens have shown resilience, rebounding from the lows caused by the FTX scandal and reaching new highs amid the ongoing bullish market.

Investor confidence in these tokens has been restored, with prominent examples such as Binance‘s BNB and OKX’s OKB demonstrating significant gains.

Exchange tokens, issued by centralized entities, offer users various benefits on exchanges, including trading advantages, payment for gas fees, and participation in decentralized finance activities on exchange-created blockchains.

Some tokens also enable users to engage in governance activities on the respective platforms.

BNB Up by 32% Since FTX Scandal

BNB, Binance’s native exchange token, currently trades at $354, marking a 32% increase since November 2022, when FTX’s bankruptcy announcement sent shockwaves through the crypto exchange ecosystem.

Additionally, BNB has surpassed previous highs in June 2023 when news of investigations by the U.S. Department of Justice (DOJ) and a lawsuit by the U.S. Securities and Exchange Commission (SEC) against Binance emerged.

While the DOJ settlement has been reached, the SEC lawsuit remains ongoing.

Likewise, OKB, OKX’s native exchange token, has experienced a remarkable recovery, surging by 132% from its FTX lows and achieving a total gain of 3,227% since its launch in May 2019.

On January 25, the OKB token faced a flash crash that wiped out nearly $6.5 billion within minutes.

However, it swiftly rebounded and reached new all-time highs.

The flash crash was triggered by a brief market sell-off leading to leveraged liquidations on the OKX platform.

The exchange has taken responsibility for the incident and compensated affected users through an airdrop.

Moreover, Bitget exchange’s BGB token has surged to all-time highs of $1.03, boasting a yearly gain of 159%.

Last September, Bitget pledged a $100 million fund called “EmpowerX” to support blockchain, AI, and Web3 projects.

The exchange anticipates increased investments, mergers, and acquisitions as the centralized exchange landscape evolves alongside regulatory changes.

FTX’s FTT Continues to Bleed

In contrast, FTX’s FTT token has experienced a significant decline, losing over 90% of its value compared to its pre-bankruptcy highs.

While FTX aims to fully repay its customers, excluding bankruptcy fees, the exchange itself will not resume operations.

Recently, the exchange sought approval to sell its 8% stake in AI startup Anthropic Holdings.

In a motion filed by FTX’s current CEO, the exchange requested permission to sell the stake and proposed two possible procedures, including an auction or a private sale.

The exchange also requested a shortened period for objections to be raised, with a court hearing scheduled for February 22 to expedite the deliberation process.

The precise price sought for the Anthropic shares has been redacted from the filing, as FTX’s legal team believes public disclosure could hinder the potential to obtain higher offers for the stake.

Earlier this month, the platform filed a motion in a Delaware court to sell its $175 million claim against bankrupt digital financial services firm Genesis Global Capital.

More Articles

Altcoin News
Another Celeb Coin Goes Live: Bhad Bhabie Launches $BHAD to ‘Fund Cancer Research’
Sead Fadilpašić
Sead Fadilpašić
2025-02-10 16:11:55
Industry Talk
Binance’s TST Coin Rallies 100x After CZ Tweet – Which Meme Coin Will Pump Next? 
Harvey Hunter
Harvey Hunter
2025-02-10 16:02:29
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors