- Cryptocurrency market data platform Kaiko raised alarm over FTT’s high trade volume in 2023.
- The token associated with FTX crashed after the crypto exchange declared bankruptcy.
- CoinMarketCap data shows that 91% of the token is held by Whales.
Cryptocurrency market data platform Kaiko today raised suspicions around FTT, the native cryptocurrency token of troubled crypto trading platform FTX. In the tweet on X – formerly Twitter, the platform noted that despite the FTX collapse, FTT continued to record high trading volume.
Kaiko noted that the weekly volume of the token has, at times, climbed above $400 million. The reported data is surprising, considering that the token’s use was tied to the crypto exchange that has now ceased operations. Kaiko added that “the token has no use case and will likely never again”.
Per the data shared by Kaiko, the trading volume of FTT peaked in April at a time when regulators were still initiating charges against founder Sam Bankman-Fried. However, the token’s volume declined in the same month before rising to over $400M million again in July.
Initially designed as a reward for traders on FTX, FTT’s use grew beyond that to a native token offering more utility on the platform. At the peak of the 2021 crypto market bull run, the token traded for as high as $80 apiece. Similarly, before FTX declared bankruptcy, it was hovering around $25 per token.
Data from CoinMarketCap show that most of the token’s current ownership is concentrated among Whale holders, with 91.29% of the token held by whales. At the present time, the token is exchanging hands at $1.03.
The data from CoinMarketCap also corroborates Kaiko’s claims as it shows that the token continues to see moderate trade volumes. In the past 24 hours, the token registered a volume of $7,147,945, although a drop from 39.52%. In addition, FTT has a market cap of $388 million, making it the 213th-ranked cryptocurrency network.
The Sam Bankman-Fried trial wages on as prosecutors present key witnesses before the court. So far, Gary Wang and Caroline Elisson, former associates of Bankman-Fried, have given testimonies against the founder in court. Bankman-Fried continues to plead not guilty.
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