The FTX token, known as FTT, serves as the native cryptocurrency of the FTX platform, a crypto derivatives trading exchange that was launched on May 8, 2019. On November 11, 2022, FTX filed for Chapter 11 bankruptcy in the United States and is currently navigating the legal process. Please be aware that some details might not represent the current state of the FTX exchange, so proceed with caution when dealing with the FTT token.
The creators behind FTX are among the most prominent crypto traders in recent years. After encountering challenges with most conventional crypto futures exchanges, they decided to establish their own. FTX prides itself on unique features like clawback prevention, a centralized collateral pool, and universal stablecoin settlement. This centralized crypto exchange was launched by Sam Bankman-Fried in 2019 and has the backing of major industry players like Almeda Research, OTPP, Temasek, BlackRock, Coinbase Ventures, and Sequoia Capital. As of 2022, the platform boasts over a million users, with daily trading volumes reaching into the billions.
Regarding clawback prevention, other derivative exchanges have seen customer funds affected by socialized losses. FTX mitigates this risk with a three-tiered liquidation model.
In the landscape of existing crypto futures exchanges, collateral is often scattered across different token wallets, complicating matters for traders as it can lead to liquidation of positions. Conversely, FTX derivatives use stablecoin settlement and require only a single universal margin wallet.
FTT also supports leveraged tokens, allowing traders to take on leveraged positions without needing to trade on margin. For example, if someone wants to short Bitcoin with 3x leverage, they can simply acquire a 3x short Bitcoin leveraged token on FTX. These tokens, which are ERC20-compatible, can be listed on any spot exchange. Currently, FTX offers leveraged tokens for XRP, BNB, TRX, BTC, ETH, EOS, USDT, and LEO.
One year after launching, FTX Exchange introduced its exchange token known as FTX Token or FTT. The FTT coin follows the ERC-20 standard and is actively utilized by participants in the ecosystem.
Initially, FTT was intended as a reward for transactions on the exchange, but over time, its functionality has expanded:
FTT is used to create leveraged tokens on the FTX Exchange; users can receive VIP discounts proportional to their FTT holdings, and they can earn rewards by providing liquidity through futures positions.
To uphold its value, the exchange routinely buys back and burns its tokens, spending 33% of trading fees, 10% of the reserve fund, and 5% of other commissions on purchasing FTX.
FTT Token applications:
A third of the commissions from transactions on FTX are used to repurchase FTT. Tokens acquired this way are then burned.
FTT tokens help reduce trading fees and secure futures positions.
Profits generated from significant market moves are shared among token holders.
Institutions and investors pay fees in FTT tokens when acquiring a white label version of FTX's OTC portal and futures market.
Projects can pay listing fees with FTT by creating leveraged tokens.
Users can stake FTT to enjoy discounts, bonus votes, and waived blockchain fees.
One advantage of the FTX Token (FTT) is the discount on commissions. Members pay reduced fees and enjoy tighter spreads. Traders utilize FTT as collateral and, if active on FTX Exchange, can see fee reductions of up to 60%. Traders benefit from insurance protection, ensuring net gains during volatile market conditions, and enabling continued trading without a margin call.
Besides its usefulness for leveraging positions, FTT staking also provides perks like discounts, chances to win NFTs, participation in airdrops, bonus votes, and access to IEO tickets.
Who Founded the FTX Token?
The FTX Token, or FTT, was created by Sam Bankman-Fried and Gary Wang.
Sam Bankman-Fried holds the role of co-founder and CEO at FTX: Cryptocurrency Derivatives Exchange. He also serves as the CEO of Almeda Research and was previously a director of development at the Centre for Effective Altruism. His trading experience includes a stint at Jane Street Capital from 2014 to 2017.
Bankman-Fried earned a bachelor's degree in physics from the Massachusetts Institute of Technology.
Gary Wang also co-founded FTX and is the chief technology officer at the Cryptocurrency Derivatives Exchange. He is CTO at Almeda Research as well. Before these roles, he worked as a software engineer after progressing from an intern position at Google. He also interned as a software engineer at Facebook.
Wang holds a bachelor's degree in mathematics and computer science from the Massachusetts Institute of Technology.
How Many FTX Tokens (FTT) Are Currently in Circulation?
FTX is a cryptocurrency derivatives exchange that provides futures, leveraged tokens, and OTC trading, focusing on solutions tailored for institutions.
FTX Token is integral to the FTX ecosystem, designed to enhance network effects and demand for FTT while reducing its circulating supply.
As of February 2021, approximately 94 million FTT tokens are in circulation, with a total supply nearing 345 million tokens.
How is the FTX Token Network Secured?
FTT is an exchange token compatible with the ERC-20 standard. Users can securely store and manage their FTT tokens using the Ledger Nano X/S hardware wallet through its Ethereum application.
Both the FTT and leveraged tokens have their security audited by the Blockchain Consilium auditing firm.
Where Can You Acquire FTX Token (FTT)?
You can buy, sell, or trade FTX Token, known as FTT, on various exchanges, such as:
Binance JEX
HitBTC
Huobi Global
Binance
If you're new to buying, trading, or selling Bitcoin, further guidance on the process is available here.
