The cryptocurrency market hosts hundreds of different projects and coins. All of them were released with different goals and have different use cases. Some tokens play a crucial role in blockchain games, allowing players to earn, other coins help to convert and transfer money across the world, and some coins are released by crypto exchange platforms and help ease transactions and trades. Examples of such assets are Binance coin, WhiteBIT token, FTT token, etc. In this article, we will discuss factors that affect crypto prices and talk about the FTT token.
What Impacts Crypto Rates?
Here are some factors that affect crypto exchange prices:
- The technology underlying a project and its application and use cases
- The market tendency
- News background and projects reputation
- Supply and demand balance
- The emission of coins.
The reputation of a project standing behind a coin means a lot, and the news background has a huge impact on cryptocurrency prices. Let’s see it in the example of the FTT token.
What Happened to FTT?
FTX used to be a large and credible crypto platform largely focused on futures trading. FTT is a native coin of the exchange. In November 2022, the CoinDesk resource rolled out the report about the financial situation of the Alameda company. It turned out to store $5,81 billion worth of FTT tokens (from the total assets worth $14,6 billion), which is wrong because a company should also have other companies’ assets. The matter is FTX is a subsidiary of Alameda.
The news shook the market, and investors started withdrawing their assets from the platform. As a result, the FTX value fell from $22 to $1.33. Now it is not recommended to buy FTT tokens because the company’s reputation was ruined.
If you want to trade crypto, it is advisable to use only reliable platforms, for example, WhiteBIT. It is an official working service under European jurisdiction. It offers quality service and convenient tools for trading, along with a high level of safety and customer support.
