FTX, one of the largest crypto exchanges in the world, filed for bankruptcy protection in November 2020 following accusations of criminal misconduct against former CEO Sam Bankman-Fried and other executives. However, the new head of FTX, John J. Ray III, is now exploring the possibility of restarting the exchange.
In an interview with the Wall Street Journal, Ray, who previously handled Enron's restructuring, stated that despite the accusations against the former leadership, customers have lauded FTX's technology and believe it could be worth reviving the exchange. "Everything is on the table," Ray said. "If there is a path forward on that, then we will not only explore that, we’ll do it.”
The decision to revive the exchange would ultimately come down to whether restarting FTX's international operations would recover more for customers than just liquidating assets or selling the platform, Ray explained. He also emphasized that the company would need to ensure compliance with all relevant regulations and laws.
In the same interview, Ray also criticized Bankman-Fried's comments to the media and elsewhere as being unhelpful. Bankman-Fried has said that FTX did not need to file for Chapter 11 bankruptcy protection and has been critical of Ray's decisions. “We don’t need to be dialoguing with him," Ray said. "He hasn’t told us anything that I don’t already know.”
The news of the potential restart of FTX caused the FTX token FTT to rise by 33% on Binance. This could be a sign of hope for FTX customers who have been impacted by the bankruptcy filing, as well as for the crypto community as a whole. FTX's technology and platform have been widely praised, and a resurgence of the exchange could bring new opportunities to the crypto market.
This article originally appeared in Crypto Markets Today, CoinDesk's daily newsletter diving into what happened in today's crypto markets. Subscribe to get it in your inbox every day.
The crypto market saw a rise in value for both Bitcoin (BTC) and Ether (ETH) as they both went up 1.5% and 0.6% respectively in the past 24 hours. Bitcoin was recently trading around $21,100 while Ether was trading at $1,550. Both cryptocurrencies have seen an upward trend over the past 7 days with a 13% and 7% increase respectively.
However, traditional markets have not seen the same success as equities closed down with traders' recession fears continuing to impact the markets. The tech-heavy Nasdaq Composite saw a 0.9% decrease, while the S&P 500 and the Dow Jones Industrial Average (DJIA) both decreased by 0.7%. Crypto options trading firm QCP Capital believes that this recent risk revival in traditional markets and cryptocurrencies may not be sustained as the U.S. Federal Reserve is still fighting inflation.
Decentralized-finance giant MakerDAO's community voted to keep the Gemini USD stablecoin as part of its reserve system for its DAI stablecoin. This outcome averted a near disaster for Gemini's stablecoin as 85% of all GUSD in circulation had been held at MakerDAO's Peg Stability Module. GUSD is a dollar-pegged stablecoin issued by the troubled crypto exchange Gemini. The vote means that GUSD will remain as a reserve asset for Maker's $5 billion DAI.
Trader Joe, a decentralized exchange (DEX) on the Avalanche blockchain, has announced plans to bolster the utility of its native governance token JOE and other ecosystem tokens. The developers plan to bridge JOE tokens once the DEX is live on Arbitrum and BNB Chain. The Joe token price was up 0.7% to 17 cents as of publication time.
The CoinDesk Market Index (CMI) has seen a 1.6% increase, currently standing at 1,004.16. Bitcoin (BTC) has also seen a positive trend, with a 1.0% increase and a current price of $20,983. Ethereum (ETH) followed suit with a 1.2% increase and a current price of $1,548.
However, traditional markets have not seen the same success as the S&P 500 closed with a 0.8% decrease and currently stands at 3,898.85. Gold has seen an increase of 1.5% and currently stands at $1,934. Treasury Yield 10 Years remained unchanged at 3.4%.
According to crypto market analysis, Bitcoin's relative strength readings are in rare territory. This suggests that the cryptocurrency may be in a strong position for future growth. It is important to note that the crypto market is highly volatile and past performance does not guarantee future results.
Bitcoin (BTC) has seen a sharp uptick in momentum, with a 25% price surge in recent times. A closer look at the data reveals that the recent Relative Strength Index (RSI) readings are highly unusual. RSI is a widely used momentum indicator that aims to identify whether an asset's price is potentially overbought or oversold.
Within the last two weeks, BTC has registered three of the 10 highest RSI readings since 2019. Its reading of 89.3 on January 14th ranked third, with its readings on January 16th and 17th ranking 8th and 9th respectively.
Ethereum (ETH) has seen more muted RSI readings, reaching the 12th and 15th highest slots since 2019.
While the momentum for BTC and ETH is likely to wane, data analysis shows that we are still in relatively uncharted waters. Both BTC and ETH's RSI have already fallen to current levels of 78 and 73 respectively. However, this high level of momentum is still unusual and worth monitoring.
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