SBF's 'gm' Tweet Sparks FTT Price Surge: What's Going On?

SBF's X Account Activity Fuels FTT Token Pump

A seemingly innocuous two-letter tweet, “gm” (short for “good morning”), posted from Sam Bankman-Fried's verified X account has ignited a flurry of speculation and a significant price surge in FTT, the native token of the defunct FTX exchange.

The post immediately raised eyebrows, as inmates in U.S. federal prisons typically lack direct access to social media. This has led to questions about whether SBF himself authored the tweet or if someone else is posting on his behalf. The Bureau of Prisons and SBF's legal team have not commented.

FTT Price Action

Following the tweet, FTT experienced a dramatic increase in value, rising approximately 32% in 24 hours to around $1.10. Trading volume also spiked, jumping from roughly $10.4 million to nearly $59 million.

Despite losing its core utility following FTX's bankruptcy in November 2022, FTT continues to attract speculative interest during the estate's liquidation process.

Legal Battles and Creditor Distributions

The tweet coincides with other significant developments in the FTX saga. The FTX Recovery Trust recently filed a lawsuit against Bitcoin mining firm Genesis Digital Assets, seeking to recover $1.1 billion in alleged preferential payments. Additionally, the estate is preparing for its third major creditor distribution, set to release about $1.6 billion to verified claimants.

Key Takeaways:

• A tweet from SBF's X account caused a price spike in FTT.
• The source of the tweet is questionable, given prison regulations.
• The activity occurs amidst ongoing legal proceedings and creditor distributions related to the FTX bankruptcy.

What next?

It remains to be seen whether FTT can sustain its gain or if this is a pump and dump scheme. Investors should excercise caution.