FTX Token's (FTT) 113% Surge Ignites Investor Frenzy Amid $16 Billion Repayment Rumors
On Sunday, the FTX Token (FTT) experienced a dramatic price surge, hitting an intra-day high that marked an astonishing 113% increase. This sudden rally followed widespread but false rumors about a potential $16 billion repayment plan.
As excitement spread through the market, many FTT holders shifted into action, preparing to offload their assets and take advantage of the price spike. By the end of the day, FTT's price settled at 56% above its opening value, leaving investors in suspense about its future trajectory. The significant rise was primarily fueled by speculation, as FTT’s status as a native crypto asset made it highly responsive to market rumors about repayments. Investors grew bullish, anticipating that FTX would commence creditor payments on October 1, injecting as much as $16 billion into the market.
However, the excitement took a hit when Sunil, the representative of FTX’s largest creditors group, stepped in to clear the air. In a tweet, he clarified that the repayment plan hearing is actually set for October 7, debunking the false rumors.
Despite the debunked rumor, the FTX Token’s price surge has already led to a significant rise in active deposits, reaching a ten-month high. The speculation over a possible repayment plan spurred market activity, with investors anticipating a potential influx of $19 billion into the market. This expectation drove many to transfer their FTT holdings to exchanges, resulting in a noticeable spike in deposit volumes.
Driven by a fear of missing out, many investors rushed to capitalize on the price surge, but this activity also indicated a sense of caution. The rise in deposits suggests that a portion of traders are preparing to exit their investments when the opportunity is just right, signaling a blend of excitement and wariness within the market.