On February 25, 2025, FTT the tokens of FTX platform, faced another uppish movement, where FTT’s value surged to $2.00, an uplift of about 30% from $1.63 in a shorter period. This spike occurred after the former head of the failed crypto-company FTX, Sam Bankman-Fried, appeared on X for the first time in two years. The ex-CEO of the crypto exchange FTX, Bankman-Fried, who got 25 years for the company’s bankruptcy, spoke about layoffs and the problems of employees of state organizations.
Despite the post that is not really related to FTX or the overall cryptocurrency market, FTT boomed for a short while. Nevertheless, the sharp rise did not last long, as the token went down to $1.75 in about 30 minutes. At the time of writing this article FTT has a value of $1.71 each and is down by 3.83% in the last one day.
Overview of FTX and Its Token
In late 2022, FTX was one of the largest centralized crypto trading platforms globally by trading volume and experienced one of the largest losses in the cryptocurrency market. Bankman-Fried, who had faced wire fraud, securities fraud, and commodities fraud charges, among others, was convicted and sentenced in March 2024.
FTT token price, associated with the exchange, has not shown much signs of recovering from the same. The token trading price hit an intraday high at $85.02 in September last year but has dropped drastically and is currently trading 97% down. However, such a fluctuation like the one captured on February 25, shows that the crypto market is inherently unpredictable.
Bankman-Fried’s Post Sparks Market Movement
Sam Bankman-Fried’s return to social media created much interest, especially because of the situation with his criminal case and legal proceedings. The message he posted was about the emotional challenge of letting go of employees and some of the comments received proved supportive. The post itself did not mention FTX but was related to the political narrative regarding efficiency in government operations and could have had an impact on FTTs.
It could have been aimed and timed to coincide with debates on the efficiency of government in general with reference to specific US government campaigns led by people like Elon Musk Department of Government Efficiency. It elicited sentiments which made people engage in speculative trading on FTT.
SBF’s Legal Battle and 25-Year Sentence
Sam Bankman-Fried’s legal issues have been discussed extensively. In November 2023, the criminal trial and all resulting proceedings ended with the decision to find the man guilty on seven counts. The charges comprised wire fraud, securities fraud and conspiracy to defraud investors. He was then arrested in the middle of March of 2024 and was later moved to federal prison where he was given a sentence of 25 years.
The Search for Presidential Pardon
As reported by Bloomberg, Joseph Bankman and Barbara Fried, Sam Bankman-Fried’s parents, have asked for his presidential pardon. They have been said to have consulted with some attorneys who advised the Trump administration to seek for a pardon. The parents are seeking this path despite the heinous nature of charges against their son particularly given the circumstances of the case and other parallels, and pardons grants across the country.
The recent pardon of Ross Ulbricht, the founder of Silk Road, by the Trump administration, has made it uncertain if Bankman-Fried will also be pardoned. Ulbricht had spent more than 11 years in prison serving for a life imprisonment before his pardon and thus there has been debate whether the same will apply to Bankman-Fried.
FTX Token’s Market Struggles
Although the FTT price slightly increased shortly after Bankman-Fried’s post, the token has otherwise exhibited poor performance. FTT on the other hand, has been dismissed by investors since its buyout by the Blackmoon group in November 2022. There were brief uplifts where the token reach a short-term appreciation but has been greatly affected by the exchange’s crash and the repercussions of the scandal.
Conclusion
The recent return to Twitter and the post about the hardships of letting people go sparked some activity on FTX Token (FTT), and in one period, it raised its price by 30%. Nevertheless, it was short-lived, and the rest of the market is still navigating the long-term consequences of FTX’s implosion. The saga of Bankman-Fried’s criminal indictment and the search for a pardon for his parents has not subsided but the future of FTT or FTX is still unclear. It also reminds that there is no such thing as an immunity to polls and fluctuations connected with influencers and the world of digital currencies.
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Frequently Asked Questions (FAQ)
1- Why did FTT surge by 30% on February 25, 2025?
FTT spiked after Sam Bankman-Fried’s first post in two years, despite the post being unrelated to FTX or crypto markets.
2- How long did the surge in FTT last?
The price increase was brief, with FTT dropping back to $1.75 within 30 minutes.
3- What caused FTT’s price decline after the spike?
Market volatility and the broader consequences of FTX’s collapse continue to influence FTT’s performance.
4- Can FTX or its token recover from the scandal?
FTX and FTT’s future remains uncertain, with market recovery hampered by ongoing legal battles and investor skepticism.
Appendix Glossary of Key Terms
FTX: A now-defunct crypto exchange that was once a leader in the industry before collapsing in 2022.
FTT: The native token of FTX, which saw extreme volatility after the exchange’s downfall.
Bankruptcy: A legal process used to address insolvency, allowing businesses or individuals to manage debts through asset liquidation.
Wire Fraud: A criminal activity carried out through the use of electronic communication aimed at embezzlement or fraud.
Clemency: Reduction of punishment, including pardon and sentence, which is usually granted by a higher power or authority.
References
Cointelegraph – cointelegrapgh.com
Bloomberg – bloomberg.com
CoinMarketCap – coinmarketcap.com
Reuters – reuters.com
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