FTX's Dramatic Turnaround: Binance Under Scrutiny as FTT Token Soars

Background

Long-standing tensions between FTX founder Sam 'SBF' Bankman-Fried and Binance's Changpeng 'CZ' Zhao surfaced amid rumors of FTX's insolvency, triggered by Binance's liquidation of $529 million worth of FTT token holdings. This move had seemingly eroded confidence, leading to the unraveling of the FTX exchange.

A Year On: Fortunes Reversed

Fast forward a year, and the narrative has shifted dramatically. Binance, once in a position of strength, now faces Department of Justice (DoJ) allegations of complicity in money laundering and sanction evasion. This reversal coincided with a remarkable 37% surge in the price of FTX's native FTT token.

FTT Token's Soaring Performance

Following the DoJ's actions against Binance, FTX's FTT token experienced a significant 37% surge in the last 24 hours, reaching $3.99 at the time of reporting. The bullish momentum on November 22 saw FTT peak at $4.49 on the 11:00 UTC candle, with profit-taking subsequently lowering the price.

Pre-existing Momentum

Notably, FTT had been on an upward trajectory since November 9, well before the DoJ's announcement regarding Binance. Opening at $1.34 on November 9, FTT spiked to a local high of $5.51 on November 10, marking a remarkable 310% increase. This surge coincided with Securities Exchange Commission chair Gary Gensler's comments about the potential reboot of FTX.

Challenges Despite Optimism

Despite renewed optimism surrounding a potential reboot, the damage caused by FTX's bankruptcy remains a significant challenge. The events of November 2022, when Binance expressed its intent to offload FTT holdings, triggered a $6 billion run on FTX, exposing vulnerabilities and fraudulent activities.

CZ and SBF Conflict

The public clash between CZ and SBF escalated in November 2022, with Binance's announcement and FTX's subsequent distress signal. Amid the chaos, Binance initially positioned itself as a potential buyer but later withdrew after due diligence. The social media spat between CZ and SBF added a layer of drama to the already tumultuous situation.

While the surge in FTT's price suggests a shift in fortunes for FTX, the lasting impact of the past mismanagement and fraud remains a substantial concern. The conflict between CZ and SBF adds a complex layer to the narrative, underscoring the challenges faced by both exchanges.