It is becoming much harder to trade FTT, the native token of the now-defunct FTX exchange. Although many trading platforms have liquidity for the asset, that situation changes rapidly. It is a matter of time until no one can liquidate these holdings, creating a somewhat uneasy situation.
FTT Delistings Galore
It is not surprising to see all reputable exchanges pull their hands off FTT and FTX. The once-popular exchange has filed for bankruptcy, and many users still wonder whether they can get their money out. Those who hold FTX’s native token may want to liquidate it as soon as possible. More and more exchanges actively delist the asset, which is entirely understandable.
Binance is the latest major platform to remove FTT trading altogether. As there is no value to the token – and highly speculative trading – it is best to protect users at all costs. Removing their various trading pairs for the asset, including BTC, BNB, ETH, and USDT pairings, is a logical outcome. All pairs failed to pass internal reviews, even if users can still convert between FTX’s token and BUSD.
The delisting of this once-popular token goes beyond Binance, though. BitMEX, known for its perpetual swap contracts, has removed all offerings. Its reason for doing so differs, as BitMEX claims there is a lack of spot trading for these pairs. KuCoin removed its FTT/USDT perpetual earlier, with other platforms likely to follow.
Volume-wise, FTT notes a daily cumulative trading volume of over $93 million, per CoinGecko data. The asset notes most activity in FTT/BUSD on Binance. However, other prominent exchanges, like Bitstamp, MEXC Global, and Huobi Global, have yet to remove the asset. It is likely FTT will remain accessible through decentralized exchanges like Sushiswap. If liquidity dries up there, people will automatically stop trading.
Damaged Trust For Exchange Tokens?
There are two types of exchange tokens: those tied to CEXes, and those belonging to DEXes. The big question is how the FTX collapse will affect both industry segments. Both verticals note a decline of over 21% in the past week, indicating there is general dismay against such assets. Those losses are steeper than setbacks affecting Bitcoin (-17.8%) or Ethereum (-19.3%).
Moreover, it isn’t unlikely people will frown upon CEX tokens a bit more. Centralized exchanges are always a potential point of failure in the industry. The demise of FTX illustrates that point rather well. While Binance remains the biggest exchange, its BNB token may see some pushback in the coming weeks. In addition, similar developments may affect tokens like OKB, LEO, CRO, KCS, TKX, HT, GT, etc.
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