From the Greek fantasy “Pandora’s Field” arises the phrase “hope is the very last thing that’s misplaced”, which has been used numerous instances and in every kind of contexts. The digital asset market is not any exception both.
And if not, ask the people who find themselves nonetheless shopping for FTX Token (FTT), the digital asset issued by the bankrupt firm FTX, within the hope that it will likely be resurrected.
As CriptoNoticias has reported, FTX was one of many largest bitcoin (BTC) and cryptocurrency exchanges available on the market that declared chapter in November 2022.
Following this, FTT value plummeted from $26.50 to beneath $1.
Nevertheless, after hitting its all-time low of $0.77 in June 2023, to the shock of many, The worth of the asset rose greater than 260%. In the meantime, the commerce quantity exceeded 100 million {dollars} on January 2.
Maybe probably the most curious factor is that, after the chapter of the change, the token lacks any usefulness, however many merchants proceed to purchase it as a guess, within the hope that it’ll resurrect from the darkest, or, reasonably, from its lowest costs. .
In reality, CoinMarketCap warns: “The FTT token not has any use and might be liquidated by the property to pay collectors. “Proceed with warning.”
On this context, some merchants shared their predictions for FTT and They even mission costs above $20 within the quick time period.
Dealer recognized on X as UniChartz notes: “The rising pattern line helps the bullish construction, with upside potential in the direction of $4.00.”
To justify his evaluation, he shares the graph the place the determine of a pennant is shaped within the FTT value.
It’s a technical evaluation indicator that predicts robust bullish actions of an assetone thing that, a priori, appears tough to occur with FTT.
For Javon Marks, a monetary market analyst recognized at X, The token might expertise a restoration and attain $20, a stage that has not been seen because the change was operational.
From these analyzes the query arises: do they actually know what FTT is or are they betting on a miraculous rise in costs?
By the best way, on October 13, 2023, Paulo Márquez, a CriptoNoticias journalist, referred to FTT purchases and defined that there’s a class of merchants who reveals property from the depths. “They commerce tokens which have been useless for months, if not years, in deserted, illiquid sinks,” he commented, whereas investigating the behaviors that drive these purchases.
What motivates FTT purchases?
In current days, it was reported that FTX EU, the European department of the defunct change, was acquired by Backpack Change. In line with the announcement, the agency can be chargeable for managing the distribution of claims arising from the chapter.
Armani Ferrante, CEO of Backpack Change, acknowledged: “Restitution to clients is an important step in rebuilding belief within the business, and Backpack is dedicated to returning FTX EU buyer funds as shortly and safely as attainable.” .
Maybe it’s such a information that arouses curiosity and motivates merchants to make a guess and purchase FTT.
Within the beforehand talked about article, Márquez offered some causes that might encourage buyers to lean in the direction of such a property.
One in every of them is the likelihood {that a} group of individuals is implementing the “pump and dump”, a market manipulation scheme to extend the value of an asset after which promote it en masse. Though it isn’t a typical apply, there are circumstances akin to that of LOOM, whose value in 2023 would have been manipulated on Upbit, a Korean change.
Nor ought to we rule out these buyers who purchased the asset throughout its growth and are actually lamenting the unrealized beneficial properties. They’re those that will not be but able to assuming the losses and might make these purchases to implement the technique dollar-cost averaging (DCA).
The strategy consists of building a recurring buy plan, of the identical quantity, in a beforehand outlined time period. All this, whatever the value of the acquisitions.
The reality is that past any sort of hypothesis in regards to the conduct and motivations of merchants, it’s clear, as soon as once more, that hope is the very last thing that’s misplaced.
