These days, there seem to be a lot of cryptocurrency exchanges to choose from. Most of the top exchanges have so many different features and unique utility tokens that it's difficult to choose the best exchange for you. The FTX Derivatives Exchange is a fantastic option for advanced traders and its utility token, the FTX Token, has more functionality than many of its competitors. Most uses of the token are related to the FTX trading platform, but it can also be a great tool for price speculation. FTX is constantly trying to increase the value of the token through many different methods. It has been successful so far this year and the FTT is almost 5 times what it was at the start of 2021.
In this article, we will discuss:
What is FTX Token (FTT)?
FTT is FTX's native cryptocurrency. The white paper states that it is designed to be the backbone of your platform and propel it forward.
Originally, the FTT token was offered as a reward for foreign exchange transactions, but it now fulfills other functions within its ecosystem, such as VIP discounts depending on the number of currencies held by users or rewards for providing liquidity through future position trading with your own FTT coins.
FTX Token is an ERC-20 token on Ethereum and the native cryptocurrency of the FTX Derivatives Exchange. If you already use FTX or want to start using it soon, it might be worth buying some FTT. Token holders get significant discounts on trading fees on the platform. They can also bet on FTT for bonuses like even lower trading fees and more airdrops of another FTX token, SRM.
The FTX exchange itself is a leading spot, over-the-counter (OTC), futures and forecast market platform. It is one of the largest cryptocurrency exchanges in the world in terms of volume, despite its youth. It offers hundreds of different tokens and its mission is to fix the plethora of glitches that most leveraged trading platforms suffer. Forced liquidation, when a leveraged trade must be sold to avoid unpayable margin calls, can be catastrophic for users and large-scale exchanges. FTX employs a liquidity back-up program, in which big traders buy settled trades before they can harm the market as a whole. Most, if not all leveraged exchanges, such as OKEx, have insurance funds for large settlements, but cannot handle dramatic price movements like the FTX support program.
When the market makes a drastic move, traders on the other side of massive sales on an exchange with inadequate protections can be forced to pay for other users' losses. This happened to overdrafts on OKEx in 2018, when the market dropped significantly and a $400 million long position was liquidated. OKEx was terribly unprepared and took 1.200 Bitcoin (worth about $48 million now) from the shorts' counter profits for the liquidated trade to cover the margin call. FTX's program makes the exchange much safer to trade during big price movements and settlements.
Most FTT use cases involve trading, but you don't need to use it to own and benefit from the token. About ⅓ of all fees generated by the exchange are used to buy FTT, which are then burned (withdrawn from circulation forever). FTX also says that its revolutionary backing liquidity fund will net profit from massive market price movements, and profits will be socialized among FTT holders. If the list of benefits to maintain FTT is still not enough, FTX sends all FTT holders 3 SRM tokens for every 500 FTT they have each week.
How does the FTX Token work?
The FTX exchange provides unique features compared to other platforms such as:
- Provides clawback prevention function using a three-tier settlement model.
- Support centralized collateral pool and universal Stablecoin settlement.
- New innovative products.
The exchange has quickly become the cryptography investment platform for many institutional clients in recent years. This meteoric rise is due to FTX's well-designed trading system, which offers advanced features and tools perfect for experienced traders, but also accessible enough for beginners who need a little help getting started with their investments.
What is the FTX Token History?
FTX Derivatives Exchange was founded in 2017 by Sam Bankman-Fried and Gary Wang. Both Bankman-Fried and Wang graduated from the Massachusetts Institute of Technology (MIT) before launching FTX and are the current CEO and CTO of the company, respectively. Bankman-Fried is one of the most successful and well-known players in the cryptocurrency community. He is also the founder and CEO of Alameda Research, a quantitative trading company that handles billions of dollars worth of cryptocurrencies. His experience is priceless and he has led both companies to great success.
FTX has had a very successful 4 year period and has been making waves with its recent investments from Coinbase Ventures and Sequoia Capital, which invest heavily in investment projects. blockchain like Bitcoin.
These two well-known companies see the enormous potential of this new startup. FTX seeks to provide more opportunities for self-employed workers and work towards a decentralized system by removing intermediaries such as agencies or platforms.
They've raised $908 million in funds over the past few months, and their last round was just a few days ago of Series B on July 20 led by 40 North Ventures and 20 other investors.
How to buy FTX token?
You will first need to find an FTT cryptocurrency bag available in your region. Binance Exchange and the FTX trading platform offer FTT and are probably the best options for users in supported regions. FTX and Binance are not available for US users. FTX has a separate US-based exchange but does not offer FTT trading. If you are in the US, your options are minimal and you may need to use a decentralized exchange (DEX) on Ethereum such as Uniswap to buy the FTT.
Use of FTT Token
- Token Burn / Revenue Share: Approximately one third of all fees generated in the FTX will be used towards an FTT rebuy; go here for more information. Any FTT purchased in this way will be burned.
- Discount on trading fees: FTT tokens will also be used to reduce trading activity fees.
- Collateral: FTT tokens can be used as collateral for futures positions. This increases the demand and utilities of the FTT.
- Socialized earnings: A portion of the earnings during major market moves will be socialized among FTT holders.
- White label solutions: cryptographic institutions will have to pay FTT costs when purchasing a white label version of the FTX OTC portal and futures exchange
- Future expansion: FTT is the backbone of the FTX ecosystem. It will become even more useful when we add other derivative products to the platform, making this token an essential part of daily trading on the FTX stock exchange.
Leveraged Token Listing Fees: Projects can use FTT to pay listing fees when creating their leveraged tokens.
Is the FTX token a good investment?
The FTX token can be a big investment – especially for FTX exchange users. You can speculate on the price, earn SRM airdrops, get a discounted rate and much more. FTT will almost certainly follow the general trend in the encryption market, and if the market breaks again, then FTT will likely too. However, if Bitcoin and Ethereum go up massively again, there is no guarantee that FTT will do the same. The token must remain popular, useful and valuable to investors in order to benefit from the rise of the market as a whole.
- Bonus Section: The FTT amount will depend on a few key factors. The success of the FTX platform and the cryptocurrency market as a whole will likely be instrumental in price movements going forward. As FTX earns more and more fees, FTT will be consumed by a higher fee, possibly driving the price up significantly.
Final Conclusions: FTX Token(FTT)
Investing in a cryptocurrency may seem like a logical choice, but it's important to consider all the factors before making a decision.
Here are some things you might want to consider before purchasing the FTT:
- FTX will purchase the FTT and will burn the amount weekly starting at 22:268.368 HKT every Monday according to their schedule. There were a total of 7.490.000 ($2021) FTT burned in July XNUMX.
- FTX is fast becoming the best exchange for derivatives trading. Although it has been around for a short time, FTX is a potential competitor to Binance as it offers low fees and many currencies on its platform.
- The exchange's $900 million Series B funding round includes more than 60 investors, including Paradigm, Ribbit Capital and Sequoia. This is considered the biggest round of financing in the sector.
- The FTX team comes from leading Wall Street quantization firms and tech giants such as Facebook, Google and Jane Street.
Hope you got all the important information about the FTT, including its features and highlights throughout this topic.
