Sam Bankman-Fried backs plan to relaunch FTX’s utility token

Sam Bankman-Fried, the former head of FTX, supported the proposal by Crypto Banter founder and CNBC Crypto Trader Ren Neuner to restore trust in the platform’s utility token going through bankruptcy proceedings of the bitcoin exchange.

I continue to think that this would be a productive path for parties to explore! I *hope* that the teams in place will do so.

— SBF (@SBF_FTX) December 9, 2022

That would be a productive path for the parties to explore! I hope that the teams in place will implement Neuner’s idea, — responded Bankman-Fried.

The founder of Crypto Banter proposed restarting FTX by issuing a new platform utility token and distributing it among creditors and account holders.

The analyst recommended directing 100% of profits to token holders. Implementing the plan would restore FTX as a dominant player and unite users, he added.

FTT rose by 47.8% to above $2. At the time of writing, daily gains stand at 26.2%, according toCoinGecko. From ATH the asset has lost 97.9%, over the last 30 days — 68.9%.

Earlier, Coin Metrics’ head of R&D Lukas Nucci proposed a version of ‘significant financial assistance’ from Alameda Research by FTX. He recorded transfers of FTT from the exchange to Alameda Research addresses.

Later, Nansen analysts based on on-chain data identified, that about 86% of utility tokens (280 million of the initial 350 million issuance) were originally controlled by the platform itself and Alameda Research.

Earlier, Binance CEO Changpeng Zhao decided to divest from FTT, exiting his portfolio investment in FTX.

The reason cited were “recent revelations”, which Zhao could have in mind the CoinDesk investigation. The latter showed the close intertwinement of Bankman-Fried’s companies.

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