FTT is a token used in FTX, an international cryptocurrency exchange. The FTT, often described as the “backbone” of the FTX exchange, offers many benefits to its holders. The terms “FTX token” and “FTT” are sometimes used interchangeably. With FTX tokens, you can earn lower trading fees and access the many benefits of an FTX exchange. You can also use your tokens as collateral to trade derivatives.
Recently, more and more people have started paying attention to FTX because its value has increased in a short period. From less than $4 in December 2020, an FTT is currently trading at close to $45. The FTX market value increased from $400 million to more than $6 billion during the same period.
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The advent of FTX is no accident. Analysts suggest that increased public exposure, strong partnerships and the launch of new protocols at the FTX exchange have made the FTX token successful, and that the FTX price uptrend is expected to continue. Here is an overview of FTX and its symbol, FTT.
What is FTX Token (FTT)?
FTX is a centralized digital currency exchange headquartered in the Bahamas. Since 2021, the platform has registered more than one million users and records billions of dollars in transactions daily. This allows people to trade innovative derivatives products, many of which are expected to set a precedent for the future of crypto trading.
Since the launch of the platform in 2019 by CEO Sam Bankman-Fried, FTX has received funding from leading trading companies. FTX has a variety of tradable instruments that are unique to the stock market. Here are some examples:
Futures: FTX supports futures contracts for more than 80 digital currencies, including many lesser-known currencies. Since the writing of this article, no other cryptographic platform has come close to this figure.
Permanent futures: FTX also offers traders the opportunity to invest in permanent futures that do not have an expiration date.
Options: At FTX Exchange, you can select the option you want and receive the offer within 10 seconds. If you do not want to trade, you do not have to accept the offer.
Market Forecasts: The FTX market allows traders to bet on real events such as the US presidential election.
FTT is one of the many innovative products available at FTX Exchange and may be the most important. Like other popular tools such as Bitcoin, FTT is valuable, tradable, and used to conduct financial transactions.
Experts sometimes refer to FTT as “one of the ERC20 tokens”. ERC20 tokens are digital coins that do not run on their blockchain: they are issued on the Ethereum network. ERC20 sets technical standards for tokens, and you must have a compatible wallet to store them. Fortunately, the ERC20 is so popular that you are unlikely to have trouble while using FTT.
To support the value of FTT, the FTX exchange regularly repurchases and burns its tokens. It does this by purchasing FTX tokens with 33% of the trading fees generated on its platform, which includes 10% of the back-up fund and 5% of the miscellaneous fees.
How does FTX Token (FTT) work?
Users trading on the FTX platform can use FTX to receive a discount on trading fees. This allows lower commissions for futures trading on FTX as well as spreads that are more limited for OTC. This token can also be used as collateral for future positions, which also increases profit and demand for FTT. During large market movements, instead of having a Clawback, the FTX Insurance Fund makes a net profit, and this part of the profit becomes social among its holders. In addition, for those who want to create leverage tokens, they can use the FTX token. Cryptographic institutions looking to purchase a white label copy from the OTC portal and future exchanges can also purchase it through FTT. As the backbone of the FTX ecosystem, FTT will become more and more useful with the addition of derivative products.
Who are the founders of FTX Token?
Sam Bankman-Fried and Gary Wang created the FTX or FTT token. Sam Bankman-Farid is one of the founders and CEO of FTX: Cryptocurrency Derivatives Exchange. He is also the CEO of Almeda Research and has worked as a development manager at an effective altruistic center. He was a trader at Jane Street Capital from 2014 to 2017. Bankman-Fried studied physics and holds a bachelor’s degree from the Massachusetts Institute of Technology.
Gary Wang is the co-founder and CEO of FTX Technology: Cryptocurrency Derivatives Exchange. He is also the Chief Technology Officer at Almeda Research. Prior to that, he worked as a software engineer after being transferred from a software engineering intern at Google. He was a trainee software engineer at Facebook. He holds a bachelor’s degree in mathematics and computer science from the Massachusetts Institute of Technology.
Advantages of FTX Token (FTT)
Unique Derivatives Tool: FTX is primarily a cryptocurrency platform. It sets itself apart from the competition by offering a wide range of derivatives and trading conditions, some of which are not found elsewhere.
User-friendly interface: Unlike other major cryptocurrency platforms, FTX does not have a learning curve. New traders find themselves at home with easy-to-understand features.
Global access: With just an internet connection, anyone can easily register an FTX account and start trading in minutes.
Disadvantages of FTX Token (FTT)
Limited Services: US residents cannot trade on FTX.com due to local laws. To compensate for this loss, FTX offers a limited range of derivatives on its FTX.us platform. The company is currently working with LedgerX to create more opportunities for US traders.
High Withdrawal Fees: With low trading fees, withdrawing anything less than $ 10,000 will give you back an extra $75 in withdrawal fees. Compared to other digital currency trading platforms of similar size, this is an expensive commitment.
Incomplete range: If you want to trade popular digital currencies such as Polkadot, Stellar and Cardano, you may need to look elsewhere or trade an alternative to the more than 130 digital currencies offered.
FTT Tokenomics
According to independent sources, the market value of native tokens is approximately $5.5 billion, which puts it among the top 30 digital currencies in terms of market value in the world. The daily trading volume of FTX tokens is close to $277 million. Trading volume is also a reflection of liquidity, meaning that traders can easily cash their positions without a price difference using FTX. In addition, the total supply of FTT coins is about 335 million. From December 2021, the FTT price range is between $40 and $45. It reached an all-time high of nearly $80 before falling to its current price. This pattern is almost identical to any major cryptocurrency, including Bitcoin (BTC).
In conclusion
FTX Exchange is a digital currency exchange focused on trading instruments in the derivatives market. The teams of this exchange are very active and due to the short life of this exchange, it has experienced a significant growth in the volume of daily transactions in the digital currency market. This exchange has introduced FTT token as its user token. This token is an ERC20 token whose holders can earn money by depositing it in an FTX exchange.
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