SBF: “Let’s Reopen FTX, Create a New FTT Token”

Local bankruptcy FTX crypto exchange cryptocurrency unit of FTT, It rose after the platform’s founder, Sam Bankman-Fried, backed a plan to revive a stock market proposed by crypto phenom Ran Neuner.

SBF: “Hope They Reopen FTX”

In response to Neuner’s proposal to restart FTX by issuing a new FTT token and giving it to creditors and depositors, Bankman-Fried tweeted:

“I continue to think that this will be a fruitful way for the parties to explore! I *hope* that existing teams will do that”

Neuner, host of CNBC’s “Crypto Trader” program, which started in 2020, suggested that 100% of the profits be distributed to token holders, adding that this idea would re-establish FTX as a strong company and not victimize users.

I continue to think that this would be a productive path for parties to explore! I *hope* that the teams in place will do so.

— SBF (@SBF_FTX) December 9, 2022

Griffin Ardern, a volatility trader from crypto asset management firm Blofin, said:

“Neuner’s proposal looks like a debt restructuring plan. Sam’s support of the same seems to have revived hope among investors that they will get their funds back.”

Although the FTX token initially rose from $1.36 to $1.90, it dropped to $1.62 at the time of this writing.

FTX’s troubles began early last month after a CoinDesk report showed sister organization Alameda Research holding large amounts of illiquid FTT tokens, a sign of an unusually close relationship between the two organizations.

In response, the world’s largest cryptocurrency exchange, Binance, announced that it was selling its FTT token holdings, forcing customers on FTX to quickly flock to the exchange and halt customer withdrawals. On November 11, FTX filed for Chapter 11 bankruptcy protections.

FTT fell 94% to $1.31 in November, destroying billions of dollars of investor wealth.

*Not investment advice.