Markets

FTX Token Jumps 20% Following Tribe Capital’s $250 Million Buyout Offer

FTX Token (FTT) surged 20% after Tribe Capital offered a $250 million package to restart the crypto exchange. It remains to be seen if the deal will go through, but it looks like FTX may be getting a second chance.

Tribe Capital is offering a $250 million package to restart the bankrupt FTX exchange, sending the FTT token up 20% before some back down.

Tribe Capital is a venture capital firm based in California with over $1.6 billion in assets under management. The VC firm’s main focus is technology, including cybersecurity, fintech, and digital health.

Positive news for FTX tokens and investors

bloomberg mentioned that the company’s co-founder, Arjun Sethi, discussed a restart with unsecured creditors in January. The post cited people close to the issue, one of whom said:

Tribe is considering leading a $250 million fundraising campaign, anchored by $100 million from itself and limited partners.

As previously reported, FTX CEO John J. Ray III has been considering a possible reboot of the FTX exchange. Although it is still not confirmed if a reboot will take place, initial discussions are underway. Unsecured FTX creditors have them too He said They are “working with debtors to evaluate all options for restarting or selling the FTX exchanges.”

FTX Token FTT price chart by BeInCrypto

Overall, this seems to be good news for FTX, at least for now. The price of the FTX token, FTT, is currently at $2.04 and continues to rise. The 20% price increase is accompanied by an almost 8% increase in 24-hour trading volumes, which currently stands at $718 million. On-chain activity picked up along with the increase in the FTT price.

Nuvei draws attention after the report

Other companies associated with FTX have had their own problems. Payments company Nuvei saw its ties with FTX called into question in a a report By Spruce Point Capital. The latter indicated that there could be a 50% downside, which would lead to a drop of more than 5% in the value of Nuvei shares.

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

NBA Legend Shaq served in the FTX lawsuit

There have been many other developments in the FTX saga. Most recently, it was former NBA star Shaquille O’Neal Servants investor suit. It accuses him of promoting FTX, which the suit says is a fraudulent company.

FTX sued not only O’Neal but other celebrities as well. Tom Brady and Steve Curry are among the celebrities who have been sued in the FTX case.

Disclaimer

Adhering to the Trust Project’s guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently check the facts and consult with a professional before making any decisions based on this content.

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