FTX’s FTT Token Defies Logic, Trading at $2 Despite Bankruptcy

A crypto community member on X has questioned the authenticity of publicly available information concerning the defunct FTX cryptocurrency exchange and its native token, FTT. The crypto user highlighted FTX’s valuation compared to publicly traded companies, despite its bankruptcy.

Citing a poll about the ratio between American men and women involved in gambling, the crypto community member questioned the methodology used to conduct the exercise. According to the poll result, the ratio between American men and women involved in gambling is nearly 2:1. A report attached to the poll noted that more men gamble because they are more likely to make impulsive decisions and take risks.

The user wondered if gender alone could explain the difference between market data and poll results. They then compared the poll to FTX’s public data, which shows surprising value for FTT, the exchange’s token. Citing data from an unnamed prediction market, the user showed that FTT was trading at $2.03.

FTX Valuation Raises Concerns Despite Bankruptcy

Beyond the token’s price, the crypto users’ shared data revealed FTT retained a 17.65% all-time profit despite FTX’s bankruptcy status. The user pointed out a disclaimer on the platform stating that FTX bankruptcy proceedings are underway and that the FTT token may be liquidated to pay creditors, rendering it useless.

Read also: FTX Repayments Set for Post-Election December 7th—Crypto Awaits a Rally

Notably, the crypto users’ posts aimed to highlight the potential inaccuracy of publicly displayed information, especially those obtained from the prediction markets. For instance, the user showed how the displayed data rated FTX, in its bankrupt state, higher than some publicly traded companies, including Scholastic Corporation (SCHL), Southern Missouri Bancorp, Inc. (SMBC), Avid Bioservices, Inc (CDMO), and Horizon Bancorp, Inc. (HBNC).