FTX Token

FTX Token (FTT) is an utility token of the FTX ecosystem. FTX is a derivative cryptocurrency exchange that offers innovative features, including derivatives, options, futures, and leveraged tokens for trading.

What is FTX Token? 

  • FTX created its token called “FTX Token (FTT)” which is an ERC-20 token that is used to participate in the FTX ecosystem.
  • FTT token holders can receive returns from FTX’s insurance fund, which is governed by a clear policy to prevent any perpetual growth.
  • FTX aims to offer the best experience for traders by providing increased liquidity, the tightest spreads, and an innovative trading platform that other exchanges cannot offer.
  • FTX has initiated an innovative product, “Leveraged Token”, which allows traders to put leveraged positions without trading on margin.
  • FTX has developed a trading platform feature, “Quant Zone”, that users can build and share trading strategies by using its formula template.

Key Metrics

TickerFTT
Token NameFTX Token
Token Type/ProtocolERC-20
Total Token Supply345,219,294
Current Circulating Supply See Coinmarketcap
Market CapitalizationSee Coinmarketcap
Token Creation DateMay 2019
Can it be mined?No

Who is behind FTX Token?

FTX was founded by Sam Bankman-Fried and Gary Wang. Both founders hold executive roles at Alameda Research (Quantitative trading firm) which had an AUM of over $100 million and was one of the largest liquidity providers. They aim to develop FTX to serve high institutional standards and provide as much liquidity as leading competitors.

What is the purpose of FTX Token?

FTT token is a native FTX exchange token which has designed mechanisms to increase the utility of FTT for FTX users, including earning fee rebates, trading fee discounts, staking FTT tokens to receive higher referral bonuses and voting in community governance etc. FTT has also burned a portion of the supply from the fee collected by the exchange in order to decrease inflation of the FTT token supply.

Insights:

The FTX exchange aims to create more advanced trading capabilities than those offered by mainstream crypto exchanges. The FTX Exchange offers innovative products like derivatives, options, margin trading, volatility products, leveraged tokens, tokenized stocks, and advanced trading tools. FTX’s headquarters is in Hong Kong. Many of FTX’s products are unavailable in regulated jurisdictions like the United States.

  • Quant Zone platform is designed with programmatic rules to execute automatic trading strategies on the FTX exchange platform. Traders can also create Quant Zone rules and share them with other users.
  • FTX significantly reduces the likelihood of clawbacks occurring by using a three-tiered liquidation model, unlike other derivative exchanges that claim a significant amount of customer funds.
  • Collateral is typically fragmented across separate tokens and margin wallets, which is difficult for traders to rebalance their wallets and prevent positions from getting liquidated. By solving these problems, FTX derivatives are stablecoin-settled and require only one comprehensive margin wallet.
  • The insurance fund prevents customer losses because of a sudden market movement and volatility, which rapidly liquidates many open positions on the exchange. The holders can receive the returns called “Socialized Gains” from FTX’s insurance fund.
  • FTT as an utility token can be used in different scenarios:
  • Trading fee discounts on the FTX exchange: users holding a certain amount of FTT tokens will receive a discount fee on trading.
  • OTC rebates: users will receive rebates from Over The Counter (OTC) trading on FTX
  • Staking FTT token: users earn benefits from staking FTT tokens including high referral rates, airdrop rewards, free swag NFTs (activity to spin Non-fungible swag wheel in FTX NFT marketplace), an opportunity to become a VIP customer etc.
  • Voting in governance community: holders staking tokens and having high amounts of trade volume have rights to vote proposals in the FTX community.

Risks:

  • FTX products are high-risk levels for users who can accept those conditions as its  products need to use high leverage that increases the volatility of the user’s returns.
  • FTT is centralised token owned by FTX, which means that the price of the token is largely linked to the performance of the exchange and its operations.

News and Updates:

  • FTX has many plans to add more products and features to use FTT tokens on the FTX ecosystem.
  • FTX has become a sponsor of Major League Baseball (MLB).
  • FTX has completed a fundraising round of $900 million that increases the value of the company to $18 billion, making it equal to the value of Softbank Group Corporation.

Community & Whitepaper Links:

Disclaimer

All investment is speculative and involves substantial risk and uncertainty. Investors should understand the nature of digital assets including the terms of return and the risk of assets. We encourage investors to fully understand the assets and the risk associated with them prior to making any investment.

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