FTT, a native token of the now-bankrupt cryptocurrency exchange FTX, has surged over 30% in the last 24 hours, witnessing its monthly high at $2.93. The price spikes come after FTX provided a crucial update on its reorganization plan on November 21, which is set to begin in January 2025.
Amid the bull season in the crypto market, the surge has helped FTT become the top gainer among the top 100 cryptocurrencies, raising expectations that the token could see further rally and surpass its year-to-date high of $3.43.
However, at the time of writing, the token faced a small correction, dropping its price to $2.56 with an impressive market cap of $843 million.
FTX’s New Update That Pumped FTT
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In a press release on November 21, FTX announced that it is nearing the final stage of its court-approved Chapter 11 plan of reorganization. With this development, FTX is aiming to start the distribution of funds to creditors and customers in early 2025.
According to the updated timeline, FTX expects to finalize arrangements with distribution agents in December 2024, after which, the defunct crypto exchange could open customer reimbursements.
To make the process smooth, the company has laid out specific steps for customers to receive their share, including setting up an approved account with a Distribution Agent, completing KYC verification, and submitting the required tax forms prior to the distribution record date.
An analyst speculates that if the upward trend continues, FTT could break through resistance at $2.69 and potentially climb toward $3.43. However, if tokens moving in large volumes are sold off, it could put downward pressure on FTT’s price.
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