FTT surges 10% as bitFlyer exchange closes in on FTX Japan acquisition

on Jun 20, 2024
  • bitFlyer plans to spend billions of yen to buy all FTX Japan shares.
  • The FTX empire collapsed in November 2022, impacting the entire crypto market.
  • The news native coin FTT gain nearly 10%.

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A local source revealed that Japan’s leading crypto exchange, bitFlyer, is negotiating to buy all shares of FTX’s Japanese subsidiary.

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Japan’s NHK news confirmed that the FTX firm is making adjustments as it prepare for business expansion and new acquisition.

The deal, worth millions of dollars or billions of yen, will see bitFlyer management taking over FTX Japan. Nevertheless, the legal tangles and the mistrust among customers and investors likely challenge the deal.

US regulators are closely watching the deal as it comes amidst FTX’s insolvency proceedings.

bitFlyer will likely introduce massive changes to earn customer trust and separate the firm from the debacle of FTX company.

For instance, FTX Japan will shift its stance to institutional investors, changing its core business to focus on crypto assets management.

FTX exchange acquired and launched FTX Japan in 2022 before going bankrupt. The latter has battled the regulatory water since and resumed withdrawals in Feb 2023 (after repaying its clients).

Meanwhile, the mastermind behind FTX’s collapse, Sam Bankman-Fried, is serving 25 years in prison, with associates receiving lighter sentences.

bitFlyer will leverage its massive operational framework to ensure a competitive environment in Japan’s crypto market.

Experts believe the deal might attract more consolidations in the industry, propelling innovations in Japanese cryptocurrency exchanges.

Moreover, the anticipated rebranding and top-notch management will likely boost the new entity, augmenting user confidence and nurturing growth.

FTT price outlook

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FTX’s native token reacted to the news with a swift surge from the daily low of $1.5628 to $1.706 – a 9.09% 24-hour increase.

FTT changed hands at $1.68 during this publication, with its daily trading volume down 30% at $31.31 million.

The ongoing broad market bounce-back will likely add to FTT’s upward momentum.

Bitcoin’s decisive move past $66K towards the $70K value region could trigger solid runs alts, including FTT.

Amidst the speculative trading environment, the latest FTX-tied developments inject new life into the ‘crashed’ FTT token.

bitFlyer’s expected rebrand will likely add more utility to the altcoin.

Nevertheless, experts seem confident about FTT’s future potential. For instance, analyst Mags confirmed that he had accumulated the altcoin for some weeks.

The acquisition deal is crucial as bitFlyer will utilize FTX’s market position and resources to ensure a resilient crypto industry in Japan.

Market players will watch how this merger might transform the Japanese cryptocurrency sector and the implications on FTT’s growth.

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