- FTX exchange announced its plan to get security approval in Cyprus before expanding to Europe.
- The native token FTX plunged in response to the news of the exchange's expansion.
- Analysts have a bearish outlook on the exchange's native token, predicting a further drop in FTX price.
FTX announced its expansion plans after receiving approval from regulators in Cyprus. The exchange has plans to offer products to European clients across the economic area. The exchange’s native token FTX suffered a price drop despite the latest announcement.
FTX price struggles post announcement of expansion plans
The trading giant FTX has revealed plans to expand into the European economic area, after securing approval from financial regulators in Cyprus. The exchange will offer its products to clients through its licensed investment firm.
FTX’s new investment entity will be headquartered in Switzerland. Sam Bankman-Fried, CEO and founder of FTX was quoted as saying:
We’ll be interacting with regulators in various countries across Europe to continue to provide a safe and secure environment for people to trade crypto.
Proponents expected FTX’s expansion plans to positively influence the exchange’s native token’s price. However, following the news of the expansion, FTX price started a downtrend.
FTX exchange recently listed Terra’s native stablecoin UST, adding to the list of supported cryptocurrencies and pushing the demand among investors higher.
The exchange has a wide user base, across US and its Europe expansion plans could boost the number of traders on its platform. This could drive higher adoption of the native token FTX. Analysts have evaluated the FTX price trend and presented a bearish outlook.
Analysts predict little improvement in FTX price over the next few weeks as the Russo-Ukrainian war rages on. FTX price has posted 1.5% losses over the past 24 hours. Analysts believe that FTX price could plummet further amidst the bloodbath in the crypto market.