The collapse of FTX and the near-total destruction of FTT’s value remain among the clearest reminders that rapid growth, prestigious backers, and billion-dollar valuations do not guarantee safety in the cryptocurrency market.
The episode reshaped how investors assess exchange-issued tokens, highlighting the importance of transparency, proper custody of assets, and strong corporate governance when entrusting capital to any crypto platform.
Also Read: Bitcoin Price Still Faces Bear Market Despite Bullish Technical Recovery
From Crypto Darling to Cautionary Tale
The crypto expert Crypto Patel takes another look at the case of FTX along with its native cryptocurrency, FTT. He believes that it is an excellent illustration of just how quickly trust can evaporate when it comes to digital currencies.
The platform was viewed as the mark of major players getting into the industry, bringing in as much as $1.75 billion from some 80 investors, including some of the largest venture capital and pension funds globally. The company expanded rapidly, becoming valued at over $31 billion, and its founder was considered a genius within the industry.
A Meteoric Rise Fueled by Investor Confidence
FTT was a result of this success. The price of the token went from $0.04 to the highest value of $85.74 in September 2021, providing huge returns to early investors, who have seen their investment rise over 2,100%.
It was evident that people expected FTX to continue being one of the major players in the sphere of cryptocurrencies. Several rounds of fundraising proved these expectations. For example, in June 2021, the company received $900 million in financing with a valuation of $18 billion.
The Collapse That Changed Everything
This critical juncture occurred in November 2022. The situation worsened for FTX’s finances when the CEO of Binance, Changpeng Zhao, announced plans to offload his FTTs from the company.
Withdrawals began in large numbers, forcing FTX to halt redemptions before declaring bankruptcy under Chapter 11 on November 11, together with over 130 affiliated entities.
From the charts, one can see that FTT lost over 96% of its value within a few days. As most of the tokens were locked up in FTX and Alameda Research as collateral, faith was lost very quickly.
FTT Technical Picture Remains Weak
The current FTT price stands at $0.22, having declined by nearly 99.75% from its all-time high price. From the weekly price charts, there are evident lower highs and lower lows with no sign of a potential reversal in trend. Any small rallies following the bankruptcy have failed to sustain themselves.
Sam Bankman-Fried was sentenced to 25 years in prison by the US Federal Court in June 2026 following the unsuccessful appeal of the court’s decision.
The lesson that traders can learn from the FTX story is that celebrity and valuation do not guarantee good governance and security.
Also Read: Stellar Chosen by UN for Digital Payments in 17 Countries
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
