FTX Token

What is FTX Token (FTT)?

FTT is a native token FTX Cryptocurrency derivatives exchange. You can check the FTX token price on the FTT price chart above. Focusing on institutional-grade solutions, FTX provides users with OTC trading, leveraged tokens and futures. FTX cryptocurrency project is supported Almeda Research, which is one of the leading cryptocurrency trading companies in the market. Overall, FTX aims to offer features that other derivatives exchanges do not have.

The main features of FTX include:

• Universal stablecoin settlement. Derivatives on FTX are traded via stablecoins, meaning you only need one common margin wallet.
• Centralized provisioning pool. By default, all positions use the same collateral pool. Thus, any token stored in the central collateral wallet can be used as collateral.
• Preventing chargebacks. FTX uses a three-stage liquidation model to reduce the amount of client funds claimed as socialized losses.
• Leveraged tokens. Traders can open leveraged positions without trading on margin. They just need to buy leveraged tokens when they want to shorten their tokens with a certain leverage. ETH, EOS, USDT and many other tokens can be used on FTX. Leveraged tokens, as well as FTT tokens, are verified by the Blockchain Council.

In addition, although the main function of FTX is to provide users with the ability to trade derivatives, it also allows them make a deal fiat currencies. However, to do this they need to pass a 3-level verification. KYC check. For your information, KYC stands for Know Your Customer and is a financial institution regulation that requires institutions to look into the background of clients before allowing them to use their services.

FTX Developers

Sam Bankman-Fried and Gary Wang are the founders of FTX.

Sam Bankman-Fried is an American entrepreneur and billionaire. Has a bachelor’s degree in physics. In addition to serving as CEO of FTX, Bankman-Fried is also CEO of Almeda Research. Investors valued FTX at $18 billion in 2021, making him one of the richest people under 30 in history.

Gary Wang is a Chinese entrepreneur. He holds a bachelor’s degree in computer science and mathematics. Like Bankman-Friend, he is the CTO of FTX, as well as the CTO of Almeda Research.

Overall FTX is built “By traders, for traders.” The main goal of Sam Bankman-Fried and Gary Wang was to create their own derivatives trading platform that would solve the problems of other similar derivatives exchanges.

Purpose of FTT Tokens

FTT is the utility token of the FTX ecosystem. Essentially, he runs the entire FTX crypto project. FTT coins are mainly used for pay commission on the FTX exchange. However, FTT holders may receive discounts on these fees. The size of the discount depends on the number of FTX tokens owned by the trader.

For example, a 3% discount applies to traders who own FTT tokens worth at least $100. A 5% discount applies to traders who own FTT tokens worth at least $1,000. Once a holder reaches $5,000 worth of FTT tokens, he/she receives a 10% discount and also starts receiving OTC trading discounts.

That’s not all, though. Discounts continue to increase as FTT asset values ​​continue to rise. The maximum discount is 60% and is available to holders of FTT tokens worth at least $5 million. In addition, these holders become Level 6 VIP members, which gives them additional privileges.

Except, FTX tokens can be staked. By staking tokens, holders receive a huge number of benefits. This includes increased referral rewards, lower maker fees and maker discounts, bonus votes in staking pools, increased airdrop rewards, free daily ERC-20/ETH withdrawals, and IEO tickets.

Finally, as with the stablecoins offered by the platform, FTT coins can also be used as collateral in a margin account. In fact, accounts on the FTX exchange use FTT tokens as collateral by default. (you can change this on the settings page if you want to use stablecoins instead).

Also, don’t forget that you can see the current FTX token price on the aforementioned FTT price chart above.

FTT Tokenomics

Since FTT tokens deflationary, their maximum supply is 345 million FTX tokens. To keep FTX tokens deflationary, platform performs weekly ransoms. Essentially, FTX buys a portion of its tokens every week and burns them. The amount of tokens burned is typically equal to 33% of FTX market fees, 10% of net proceeds to the Socialized Gains fund, and 5% of additional FTX fees.

However, if you are planning to buy FTT tokens, you should consider the fact that the price of the FTX token tends to fluctuate. Why? Essentially, this is because fluctuations in the entire crypto market also affect the price of FTT, along with the prices of many other crypto assets.

Finally, please note that users in the US and some other jurisdictions are not able to purchase FTT tokens.