FTX Token (FTT) Jumps 20% As Tribe Capital Offers $250M to Reboot Exchange

FTX token (FTT) skyrocketed 20% after Tribe Capital offered a $250 million package to reboot the crypto exchange. It remains to be seen whether the deal will go through, but it appears that FTX might get a second chance.

Tribe Capital is offering a $250 million package to reboot the bankrupt FTX exchange, leading to the FTT token rising by 20% before falling back some.

Tribe Capital is a venture capital firm based in California that has over $1.6 billion in assets under management. The VC firm’s primary focuses are tech related, including cybersecurity, fintech, and digital health.

Positive News for FTX Token and Investors

Bloomberg reported that the company’s co-founder Arjun Sethi had discussed a reboot with unsecured creditors in January. The publication cited people close to the matter, one of whom said,

“Tribe is considering leading a $250 million fund-raising campaign, anchored by $100 million from itself and its limited partners.”

As previously reported, FTX CEO John J. Ray III was considering a possible restart of the FTX exchange. Although it is still uncertain if the restart will happen, preliminary discussions are underway. FTX’s unsecured creditors have also said that they are “working with the debtors to evaluate all options to reboot or sell the FTX exchanges.”

FTX Token FTT Price Chart by BeInCrypto

All in all, this appears to be good news for FTX, at least for now. The FTX token, FTT, is currently priced at $2.04 and continues to rise. The 20% increase in price is accompanied by a nearly 8% increase in 24-hour trading volumes, which currently stands at $718 million. On-chain activity has risen alongside the increase in the price of FTT.

Nuvei Comes to Attention After Report

Other companies associated with FTX have experienced their own troubles. Payments firm Nuvei has seen its ties with FTX questioned in a report by Spruce Point Capital. The latter suggested there could be a 50% downside, leading to a drop of over 5% in Nuvei’s stock value.

Spruce Point Capital claimed that Nuvei may have been an investor in FTX. The crypto exchange had previously partnered with Nuvei in November 2021.

NBA Legend Shaq Served in FTX Lawsuit

There have been several other developments taking place in the FTX saga. Most recently, former NBA star Shaquille O’Neal was served an investor lawsuit. It accuses him of promoting FTX, which the lawsuit deems a fraudulent company.

The FTX case has served a lawsuit not only to O’Neal but also to other celebrities. Tom Brady and Steph Curry are among the celebrities who have been served with lawsuits in the FTX case.

Source