The initiative by Binance to save FTX failed, but the founder of the Tron ecosystem thanked Changpeng for trying. Sun announced he wants to support those investors who bought tokens like TRX, BTT, JST, SUN, and HT.
Due to the collapse of the cryptocurrency exchange FTX, there are more initiatives to help affected investors. After Changpeng Zhao declined to buy the company, Justin Sun, founder of Tron (TRX), said he would help FTX save its investors.
Justin Sun Comes to the Rescue of FTX
Changpeng Zhao, the CEO of Binance, had initially offered to acquire the rival platform FTX. However, it recently withdrew from the transaction, causing many investors to lose their last hopes.
Although the initiative by Binance failed, many prominent players in the ecosystem hailed it. Justin Sun, the founder of the Tron ecosystem, thanked Changpeng for trying to save FTX, as it requires much courage.
Sun also announced he was working alongside FTX to support those investors who had bought tokens from the Tron ecosystem. The tech entrepreneur mentioned TRX, BitTorrent (BTT), Just (JST), Sun Token (SUN), and Huobi Token (HT).
Despite his usual ironic tweets, extravagant announcements, and publicity stunts, Justin Sun seems serious this time. None other than Sam Bankman-Fried, the CEO of FTX, shared the post after remaining silent for several hours.
Justin Sun Proposes a Solution for Tron Investors
That initiative echoes a previous announcement made by the Huobi platform alongside TronDAO. Both entities explain that they seek to help those investors holding one of the above tokens on FTX.
Although nobody knows the details, Huobi users must fill out a form to declare their coins blocked on FTX.
Huobi and TronDAO stated they would do their best to support those users wishing to withdraw their Tron tokens from FTX. Since it is impossible to determine whom this initiative might affect, they must work cautiously.
The Collapse of the FTT Token Was Predictable
FTX, the fourth largest cryptocurrency exchange regarding trading volume, became too dependent on its native token. The house of cards collapsed after the public learned the hedge fund Alameda Research, belonging to FTX, uses FTT.
The price chart allowed the prediction that the FTT token would suffer a catastrophic drop. According to market experts Stefan Lübeck and Peter Büscher, if the value of FTT falls below USD 22, it will reach USD 4.
The price of FTT rose without suffering any significant pullback between November 2021 and March 2022. That should be an obstacle, as no bottom serves as support to absorb the course due to the lack of countermovement.
That occurred at a price of around USD 22, but no support points between the support and resistance levels could prevent the collapse. The spread of rumors about the imminent bankruptcy of FTX led investors to sell their FTT tokens, causing bearish momentum.
FTT is now in the USD 3 resistance formed during the sideways trend in the 2021 summer. The prediction about the drop in the price occurred thanks to the experience in recognizing crash scenarios in advance.
By Alexander Salazar
