FTT explodes to 4 months’ height following a mysterious tweet from SBF

tl;dr:

The value of the asset skyrocketed in double digits after it was believed that the former FTX CEO tweeted a simple “Good morning.” The exchange suffered a shocking collapse three years ago, but compensation for affected clients is ongoing.

What fueled the pump?

FTT – Native Tokens for Now-Deprecated Crypto Exchange FTX – Increased 25% on the 24-hour scale, with prices temporarily rising to a four-month height of $1.20. In the next time, we go back to the current $1.02.

The giant green candle is most likely linked to Sam Bankmanfried (former CEO of FTX), who broke silence with X after a long period of inactivity.

Today (September 24th), he posted a simple “GM” short for “Good Morning” that is widely used in the Crypto community. Many members often start their day with the abbreviation, informing them of their positivity, optimism, and interacting with their followers.

He was later left bewildered by the SBF post as he sentenced to 25 years for adjusting one of the biggest financial frauds in history. A few hours after the “GM” interaction, another announcement came:

“No, SBF hasn’t posted himself from prison. I’m a friend who posts on his behalf.”

Earlier this year, SBF (or another person managing his X account) triggered another major price pump for FTT by sharing a 10-part thread on layoffs and employment issues. His opening post is:

“I have a lot of sympathy for government employees. I have not checked my emails in the past few days either.”

He later said firing people was “one of the hardest things in the world,” adding that it was often the company’s fault for employing too many employees and “don’t know what to do with them.”

It remained unclear whether that was an attempt by the SBF to consider the US government’s plans at the time to remove federal employees who were not productive in the workplace.

He also saw his interaction as an attempt to win an amnesty from President Donald Trump.

What’s going on with FTX?

The exchange meltdown towards the end of 2022 caused billions of dollars in losses for creditors, sending shockwaves throughout the crypto industry. After bankruptcy, FTX management was handed over to restructuring experts tasked with retrieving the assets of affected users.

FTX Recovery Trust has already distributed a significant amount of funds and recently announced the next phase of the process that begins on September 30th. Initially, it focuses on creditors and retailers, collecting about 120% of the claim. Please note that clients from large institutions with larger claims will not receive generous payments.

US customers will receive an additional 40% of their bills and increase their total recovery to 95%, while those who use the international division of FTX will qualify for a total of 78%. General unsecured and digital asset loan claims are set to be repaid at a 24% rate, with an overall recovery rate of up to 85%.