Recently, the FTX estate, overseeing the bankruptcy proceedings of the defunct company, announced that customers would receive more than 100% repayment. Subsequently, the exchange token FTT experienced a surge in value, surpassing $2 per unit. Despite its association with a failed crypto exchange, FTT still maintains a market valuation of $535 million, a puzzling scenario considering its lack of intrinsic value.

Persistent Dead Coins

FTT remains active on various exchange platforms, despite its origins linked to FTX, a crypto exchange infamous for fraudulent activities. FTX's CEO, Sam Bankman-Fried, was sentenced to nearly 25 years for his involvement in the fraud. FTT played a significant role in enabling FTX's misconduct and contributed to the company's downfall due to its extensive reliance on the token.

Despite FTX's Collapse, FTT's $535M Market Cap Highlights Crypto Absurdity

Although FTT's current market cap stands at $535 million, it reached a staggering $9.75 billion on Sept. 9, 2021. Despite its involvement in market manipulation and deceptive financial strategies, the token still trades at $1.63. Additionally, FTT is highly centralized among its holders, with the FTX estate controlling 69.06% of the total supply and Binance holding 9.51%. Even before this distribution, FTT's tokenomics resembled a pyramid scheme.

FTT's distribution is laughable at best, exacerbated when the contract deployer unlocked the remaining locked supply. The token's fully diluted market cap now stands at $535 million due to the contract deployer dumping all remaining FTT tokens into circulation. Beyond its initial use within the FTX ecosystem, FTT lacks real-world utility, making it an unattractive investment compared to other cryptocurrencies.

Nevertheless, some individuals, including speculators, high-risk traders, and hopeful investors, may still invest in FTT, betting on the potential boost in the token's value from FTX's bankruptcy proceedings and potential restructuring. Interestingly, even tokens like Celsius Network's CEL and Voyager's VGX, with significantly lower values, persist despite their association with collapsed crypto projects and lack of development or remaining use cases.

What are your thoughts on the survival of dead coins like FTT, despite their lack of real use cases and fraudulent origins? Share your opinions in the comments below.