FTX’s token FTT is falling again. And while its recent slip isn’t as calamitous as last November when FTX Founder Sam Bankman-Fried’s crypto empire was swiftly wiped out, the recent stumble is still connected to the exchange’s existence—or lack thereof.

The token that offered investors lower trading fees and other perks when transacting on FTX nearly doubled yesterday after the exchange’s lead bankruptcy attorney from Sullivan & Cromwell floated the possibility that the exchange could one day be reopened.

“All options are on the table, but we don’t have any particular path forward at this time,” said Andy Dietderich in response to questions raised by Judge John Dorsey about restarting the exchange in a Delaware District Court.

Dietderich said that restarting the company, whether that pertains to FTX’s international exchange or one tailored to U.S.-based investors, would likely require raising capital. He also said there are questions about whether the bankruptcy estate should use its funds to fund the potential restart or seek resources from third parties.

One possibility put forth by Dietderich involved letting FTX’s burned customers divert a portion of what they eventually get back to “receive some kind of interest in the exchange moving forward.”

The token surged as high as $2.63 from $1.32 following the attorney’s remarks. But almost as quickly as it shot up, FTT has since reversed and sunk back down to $2.04, a nearly 19% loss over the past day, according to CoinGecko.

The pump resembles traders’ reactions to a statement made by FTX’s current CE

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Author: André Beganski

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