What is FTX Token (FTT)?

What is FTX Token (FTT)?

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FTT is the native currency token of the FTX Cryptocurrency Exchange that debuted on May 8, 2019. The team behind FTX is made up of some of the most successful crypto traders over the last few years, who chose to build their own platform after encountering challenges with the most popular crypto futures exchanges.

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FTX asserts that it is unique owing to features such as clawback protection, centralized collateral management, and global stablecoin settlement. In terms of clawback protection, socialized losses have grabbed a large portion of consumer assets on other derivatives exchanges. FTX mitigates this risk using a three-tiered liquidation strategy.

On existing crypto futures exchanges, collateral is split among many token wallets, which makes it difficult for traders to liquidate contracts. By contrast, FTX derivatives are stablecoin-backed and require only a single universal margin wallet.

Another FTT feature is leveraged tokens, which let traders enter leveraged bets without using margin. If a trader wants to open a short position on Bitcoin with threefold leverage, they can purchase a 3x leveraged short Bitcoin token on the FTX exchange.

These ERC20-compliant coins can be traded on any spot market. FTX presently provides leveraged tokens in the form of XRP, BNB, TRX, BTC, ETH, EOS, USDT, and LEO.

 

Component FTX Token (FTT)
Technologies Proof-of-Stake, product listings, fast development cycles, and more
Market Capitalization $5.9 Billion+
Open-Source Yes
Consensus Mechanism Proof-of-Stake
Smart Contracts Not yet
Founders/Authors Sam Bankman-Friend and Gary Wang
Launch Date 2019
Circulating Supply of Coins 138,998,762 FTT
Maximum Coin Supply 352,170,015 FTT
Mining-based Coin? No
Is FTX Token a Stablecoin? No
Does FTX Token have a burn rate? Yes
Does FTX Token have a Whitepaper? Yes, the whitepaper can be viewed here

 

Evolution and Development of FTX Token

FTX was formed in May 2019 by MIT grads Sam Bankman-Fried and Gary Wang. Before starting FTX, Bankman-Fried worked as a proprietary trader at Jane Street Capital and launched Alameda Research, a quantitative trading business. FTX bought Blockfolio, a bitcoin portfolio management tool, for $150 million in August 2020. 

In July 2022, FTX secured $900 million from 60 investors at a valuation of $18 billion. FTX relocated its headquarters from Hong Kong to The Bahamas in September 2022.

What makes FTX Token unique?

According to the official website of FTX, the trading platform's processes are difficult to imitate, making it a one-of-a-kind asset in the blockchain space.

Trading on the FTX trading platform allows traders to enter short or leveraged trades without needing to trade on margin. As a result, traders find it difficult to adjust and avoid liquidating positions on many futures markets. 

This necessitates a centralized collateral fund and a global stablecoin because FTX derivatives are stablecoin-settled. Just one universal margin wallet is required. Beyond bankruptcy, an account suffers socialized losses, clawbacks, and auto-deleveraging. 

If a user has a collateralized futures contract and the markets move against them, the losses must be covered. The account owner is locked alongside other users who are not liquidated because no exchange can collect assets from a bankrupt account owner outside of the system in crypto.

The FTX trading platform uses a three-tiered liquidation technique to reduce the risk of clawback.

What are the main uses for FTX Token?

The FTX Token can be used in the following ways:

  • Trading Costs: In comparison to other cryptocurrency exchanges, FTX futures trading costs are lower, and OTC spreads are tighter.
  • White Label Solutions: A white label edition of the FTX OTC website and futures market has grabbed the interest of crypto institutions and significant investors who will be able to purchase the product using the FTT token.
  • FTT as Collateral: To help sustain long-term demand for FTT, it can be used as leverage in futures contracts.
  • The valuation of the FTT token is strongly attributable to the FTX platform's future expansion and enhancements. Holders of the FTT coin can anticipate an increase in their holdings as the FTT price rises.
  • Create Leveraged Token Listing: Future projects can pay a fee and use their coin to produce leveraged tokens.
  • Token Burn/Revenue Share: When purchasing FTT from FTX, a transaction fee will be charged, one-third of which will be used to repurchase FTT tokens, which will then be burned.
  • Additional Gains for FTT Holders: When the crypto market experiences significant market volatility, FTT holders will benefit from the FTX backup liquidity pool.

What is the future potential for FTX Token?

Because FTX is a cryptocurrency trading platform, cryptocurrency users interested in investing in any significant cryptocurrency will learn about or use the platform. This is a significant benefit for FTT holders, as they may anticipate the token's price skyrocketing as more people join the site and utilize it as a trading system regularly.

If the FTT token price exceeds the $66 level, the technical indicators on the FTT/BUSD chart may indicate a surge in the price of the FTT token.

Price analysis on FTX Token

FTX Token was initially launched in 2019, and its price analysis over the past two years are indicated as follows:

 

  2019 2020 2021 to date
FTT Price High $2.27 $5.77 $79.87
FTT Price Low $1.14 $2.01 $22.79
Market Cap $221M $544M $9.65B

 

Price prediction on FTX Token

FTT has been riding the bull market wave to new highs. The good news is that crypto specialists expect the market will continue optimistic in the next weeks as Bitcoin and Ethereum reach new highs. If this forecast comes true, the FTT token is likely to easily eclipse its all-time high of $79.87 and reach the moon.

Regardless of whether it is adopted, technical analysis indicates that the FTX Token price will remain volatile until January 2022. According to price forecasts that bulls may be returning, the FTX Token price should finish up higher, say $50.38, by 2024. 

According to expert forecasts, the FTX Token has a bright future and a big market valuation. It may be slightly harmed, but bulls will return, and the price of FTT Tokens may surge to $805 over the next five years.

Which wallets are the best option for storing FTX Token?

The following wallets are the best option for FTT:

  1. Ledger or Trezor
  2. Atomic Wallet
  3. MyEtherWallet
  4. Trust Wallet
  5. Coinomi

 

1. Ledger or Trezor: One of the best locations to keep FTX Token (FTT) is in a Ledger or Trezor encrypted hardware wallet. Hardware wallets offer advanced encryption to protect the user’s cash from sophisticated network assaults and phishing schemes that users of software or website wallets may experience. They even let users reclaim cash if their wallet is stolen, destroyed, or otherwise compromised.

 

2. Atomic Wallet: FTX Token (FTT) can be held in Atomic Wallet (Android, iOS, and desktop). FTT and other ERC20 and BEP2 coins are supported by Atomic Wallet. Atomic Wallet also has Atomic Swaps and an Exchange built-in, allowing users to exchange between all supported assets, including FTX Token.

 

3. MyEtherWallet: FTX Token (FTT) may also be stored in one of the most popular wallets, MyEtherWallet. Users may store any ERC20 token on the Ethereum blockchain with MyEtherWallet, without having to download any clients or software.

Traders and Investors may access MyEtherWallet through the web from anywhere. When users access their funds, a secure device and internet connection Are ensured. Sign-in is done using a mnemonic key phrase or a variety of alternative sign-in methods.

 

4. Trust Wallet: Trust Wallet, an official Binance wallet, is an excellent location to store FTX Tokens (FTT). A mobile wallet offers simplicity, security, and backup alternatives for those new to cryptocurrencies or simply wishing to keep their FTT on a safe device.

 

5. Coinomi: This multi-chain wallet has been in progress since 2014, when it became one of the top solutions for storing cryptocurrencies. Coinomi not only maintains its leading position but also provides new features and improvements to keep up with the competition. 

Coinomi now supports over 125 networks with over 1700 tokens and currencies. A few of these tokens and currencies can also be transferred using SegWit for faster transactions.

Where can you buy FTX Token?

FTX Token can be purchased from any of the following cryptocurrency trading platforms:

  1. Binance
  2. FTX Exchange
  3. Huobi Global
  4. ByBit
  5. KuCoin

 

1. Binance: Binance is the world's largest cryptocurrency exchange. It is not user-friendly due to its many trading choices and features. Binance is expected to be a high learning curve for all investors.

Binance's desktop and mobile trading interfaces provide access to hundreds of cryptocurrencies and market charts. Users may also access futures and options trading, as well as many order types.

 

PROS CONS
Binance offers a wide range of crypto assets that can be traded, giving traders a vast range of trading opportunities The Binance Platform does not accept United States clients
Low fees are offered, meaning traders can put more into their trading and investment The platform is complex, and it may be confusing to complete beginners
There is a wide selection of trading opportunities and order types that can be used There is no proprietary native wallet offered
Binance has faced issues with regulations in several regions

 

2. FTX Exchange: FTX is a cryptocurrency trading platform and exchange that is focused on trading, offering a diverse product portfolio that includes futures, options, volatility products, and leveraged tokens. 

FTX's platform offers a plethora of features that experienced traders and professional trading organizations will appreciate while also providing simple spot trading for newbies to the cryptocurrency industry.

 

PROS CONS
The platform allows users to quickly swap between crypto assets The platform is not available in the United States
There is an innovative trading app for iOS and Android USD withdrawals attract high fees
There are more than 130 crypto coins that can be traded There is no live chat support offered
The platform is known for its low fees
Traders can participate in staking from the platform 
Traders have the option to use FTX Pay, allowing them to withdraw in crypto or fiat currencies

 

3. Huobi Global: Huobi is a prominent cryptocurrency exchange trading platform that is situated in Asia, and it has been operating since 2013. It has rebranded itself as Huobi Worldwide, a global crypto exchange that supports several altcoins and stablecoins, as well as its own creation, HUSD, which is a USD-backed stablecoin.

 

PROS CONS
Huobi offers an innovative and robust trading platform where traders can buy, sell, and trade Fiat deposits and withdrawals are not offered
There are more than 100 crypto assets offered on the main exchange The account registration can be tedious and time-consuming
Traders can access the HADAX exchange listing to discover other alternative coins
The platform is known for its high level of cybersecurity, giving the exchange a high trust score
There is dedicated customer support offered

 

4. ByBit: Bybit is a good platform for skilled cryptocurrency traders seeking a more complex exchange. There are several user-friendly exchanges available currently, with simple interfaces designed to ease novice investors into the cryptocurrency market, but they are often unsuitable for serious traders.

 

PROS CONS
ByBit offers derivatives trading as well as spot trading on the platform, giving traders a range of trading opportunities Withdrawals can only be done in crypto
There is margin trading available with 1:100 maximum leverage United States clients are not accepted
Traders can use the innovative mobile trading app which is available for iOS and Android mobile devices
There is a supported fiat gateway that ensures easy deposits

 

5. KuCoin: KuCoin is a fantastic cryptocurrency exchange for investors. It can boast a high level of liquidity, a large user base, a diverse range of accepted assets and services, and minimal trading costs. KuCoin operates across most of the world's countries, including Turkey, India, Japan, Canada, the United Kingdom, and Singapore.

 

PROS CONS
There are low trading costs and withdrawal fees charged There are no fiat trading pairs offered
The exchange is user-friendly and is suited to all types of traders Traders cannot deposit via bank transfer
There is a vast selection of altcoins available  The platform can be complex for complete beginners
Traders have access to 24/7 customer support
Traders can purchase crypto using fiat currencies
There is no mandatory KYC procedure

 

Does FTX Token use coin burns?

Yes, FTX has a Buy and Burn policy where the exchange repurchases tokens and burns them according to the following:

  • 33% of fees are generated through the FTX exchange and associated markets.
  • 10% of net additions to the backstop funds, also known as Socialized Gains.
  • 5% of fees are collected from other uses of the overall FTX exchange and platform.

When FTX buys back FTT from the FTT/USD market, the funds are burnt weekly according to a schedule adopted by the platform. The schedule starts at 10 pm UTC +8 every Monday, and the tokens that were purchased are destroyed by 11:59 pm UTC +8 every Tuesday.

What is FTX Token’s largest Competitor?

The largest competitor of FTX is Coinbase.

FTX has much cheaper trading costs than Coinbase and most of the other leading cryptocurrency exchanges. While Coinbase Pro offers a more competitive pricing structure than the standard Coinbase platform, FTX frequently outperforms it.

What is the Staking Process involved with FTX Token?

To own and stake FTT, all clients must pass the first KYC level to participate in staking. SRM awards will be available to those who have completed KYC 2.

  • Traders must note the following where staking of FTT is concerned:
  • All users must adhere to the FTX terms and conditions in their entirety.
  • When you sell your FTT holding, the tokens are held for two weeks before being distributed.
  • Collateral for a spiked FTT cannot be used.
  • To be eligible for SRM airdrops, customers must have a minimum balance of 500 FTT in their FTX account, staked or unstaked tokens.
  • If two factors determine your fees (e.g., manufacturer rebates), you receive the best of the two.
  • After discounts and advantages, fees cannot be less than 0.015%.
  • The taker charge minus the referral rebates may not go below 0.03% for non-VIP payments; if it does, the excess is deducted from the referral rebates.
  • Referring to a VIP account will not earn the user referral benefits, although VIP accounts can still earn referral awards.
  • Other promotions, such as external referral schemes, have the potential to influence referral behavior.
  • At any moment, FTX maintains the right to amend the regulations governing staked FTT.
  • Staking is not permitted on locked FTT.

Staking FTT Provides the Following Benefits: 

  • Increased referral rates
  • Fee rebates
  • Free NFT swag
  • Bonus votes
  • Increased airdrop rewards
  • Free Daily ERC20/ETH Withdrawals
  • IEO tickets

Is FTX Token a Good Investment?

FTX has quickly grown to become one of the most prominent cryptocurrency trading platforms in the world. And it has a great deal of use inside the FTX ecosystem, which should help maintain the coin in high demand. 

An advantage of the FTT coin is that, due to its notion of socialized profits, it may become a source of passive income. If such socialized advantages become a reality, there may be a future surge in demand for FTT.

What is the supply and distribution of FTX Token?

The circulating supply of FTT is 138,998,762 FTT and a max supply of 352,170,015 FTT.

  • The term “fixed supply” or “maximum supply” refers to the maximum quantity of coins that will ever be created and placed into circulation.
  • The term “Total Supply” refers to the total number of coins minted, including those that are no longer in circulation or have been lost.
  • The term “circulating supply” refers to the total quantity of coins in circulation. 

Is FTX Token a viable Alternative Coin?

Yes, FTT is a good alternative coin in terms of:

  • Hacking – FTX has not experienced any successful hacking attempts.
  • Security – The platform offers robust security features and protocols.
  • Future Uses – The platform’s popularity continues to grow, and thus the future uses of FTT will increase.

What are the differences between FTX Token And Bitcoin?

Bitcoin is the largest cryptocurrency in the world that serves as a medium of exchange and a store of value, while FTX Token (FTT) is the native token of a popular, reputable cryptocurrency exchange trading platform.

 

  Bitcoin FTX Token
Price change 20/21 +400% +640%
Market Cap $800 Billion+ $5.9 Billion+
Past Hacks None None
Popularity Very High High
Altcoin Rank #1 – Original Crypto #32

 

What are the differences between FTX Token and Ethereum?

Ethereum is the open-source, decentralized technology that drives most of the cryptocurrency industry. Ethereum's technology underpins everything from decentralized finance (DeFi) apps and non-fungible tokens (NFTs) to business blockchain solutions. As a result, Ethereum's native token, Ether, has surpassed Bitcoin as the second-largest cryptocurrency.

Both FTX and Ethereum serve different purposes because FTX is a cryptocurrency trading exchange platform, and Ethereum is the largest programmable blockchain in the world.

 

  Ethereum FTX Token
Price change 20/21 +880% +640%
Market Cap $460 Billion+ $5.9 Billion+
Past Hacks None None
Popularity Very High High
Altcoin Rank #2 #32

 

What are the differences between FTX Token and Dogecoin?

Dogecoin is a meme coin that was created as a joke in 2013 to make fun of the Bitcoin hype at the time. Dogecoin is used to tip content creators on different social platforms such as Twitch, Reddit, and others. DOGE serves as a medium of exchange and can be used to transfer value between users.

Cryptocurrencies such as Dogecoin are available for purchase and exchange on the FTX Exchange, and while FTT has a wide range of uses, it does not compete with DOGE.

 

  Dogecoin FTX Token
Price change 20/21 +7,300% +640%
Market Cap $22 Billion+ $5.9 Billion+
Past Hacks None None
Popularity High High
Altcoin Rank #12 #32

 

What are the differences between FTX Token and NFTs?

Nonfungible tokens (NFTs) are digital assets that each have a unique value, with no two NFTs holding the same characteristics or value as another. FTX Token, on the other hand, is fungible, which means that one FTT has the same value and characteristics as another FTT.

What is an ERC-20 Token?

An ERC-20 token is a blockchain-based crypto asset that functions like Bitcoin, Ethereum, and Bitcoin Cash. It can be used to store value and is capable of being transmitted and received. 

The primary distinction between ERC-20 tokens and other cryptocurrencies is that ERC-20 tokens are produced and housed on the Ethereum blockchain, whereas Bitcoin and Bitcoin Cash are blockchain native currencies. 

ERC20 tokens are stored and sent via Ethereum addresses and transactions, and they utilize gas to pay transaction costs.

What does the FTX Foundation do?

FTX was formed to make the best effect possible on the planet. Since the exchange's inception in 2020, it and its affiliates have contributed tens of millions of dollars to charitable causes. 

The FTX Foundation was formed with the same aim as the FTX Platform: to make the world a better place by carefully considering where funds may do the best. The FTX Foundation was founded with the added commitment that FTX users will have a real influence on how the Foundation's funds are allocated.

How do FTX NFTs work?

The FTX Exchange has recently started allowing users to purchase, trade, and display Ethereum non-fungible tokens (NFTs) on its formerly Solana-only non-fungible token (NFT) market. The FTX Exchange is the first and only NFT exchange to support both Ethereum and Solana NFTs.