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About FTX Token
Key Points
- FTT is the native cryptocurrency token of the crypto derivatives trading platform FTX.
- FTX filed for Chapter 11 bankruptcy protection in the U.S. on Nov. 11, 2022.
- FTX is a centralized crypto exchange launched by Sam Bankman-Fried in 2019.
- As of 2022, the platform has over a million registered members, and the daily trading volume has reached billions of dollars.
Features
- Clawback prevention using a three-tiered liquidation model.
- Centralized collateral pool and universal
Introducing FTX Token: A Revolutionary Cryptocurrency
Introducing FTX Token (FTT): A Comprehensive Overview
The native cryptocurrency token of the crypto derivatives trading platform FTX, FTT, was launched on May 8, 2019. However, on November 11, 2022, FTX filed for Chapter 11 bankruptcy protection in the United States and is currently undergoing proceedings. Please exercise caution when interacting with the FTT token, as some of the information provided may not accurately reflect the current standing of the FTX exchange.
The team behind FTX, comprising some of the most prominent crypto traders of the past few years, identified shortcomings in mainstream crypto futures exchanges, prompting them to launch their own platform. FTX distinguishes itself through innovative features, including clawback prevention, a centralized collateral pool, and universal stablecoin settlement. Founded in 2019 by Sam Bankman-Fried, FTX is a centralized crypto exchange backed by industry giants, including Almeda Research, OTPP, Temasek, BlackRock, Coinbase Ventures, and Sequoia Capital. As of 2022, the platform boasts over a million registered members, with daily trading volumes reaching billions of dollars.
Notably, a substantial portion of customer assets on other derivative exchanges have fallen prey to socialized losses, a predicament that FTX mitigates through the implementation of a robust, three-tiered liquidation model.
In contrast to existing crypto futures exchanges, where collateral is dispersed across multiple token wallets, thereby hindering the liquidation of positions, FTX derivatives boast a distinct advantage. By being stablecoin-settled, they only necessitate a single, universal margin wallet, thereby streamlining the process.
One of the standout features of FTT is its leveraged tokens, which empower traders to assume leveraged positions without the necessity of margin trading. For instance, if a trader wishes to short Bitcoin with 3x leverage, they can simply purchase a 3x short Bitcoin leveraged token on FTX. Notably, these tokens are ERC20-compatible, allowing them to be listed on any spot exchange. Currently, FTX offers a diverse range of leveraged tokens, including XRP, BNB, TRX, BTC, ETH, EOS, USDT, and LEO.
A year subsequent to its inception, FTX Exchange unveiled its proprietary exchange token, aptly dubbed FTX Token or FTT. This ERC-20 standard token has been widely adopted and is actively utilized by participants within the ecosystem.
Initially, FTT was conceived as a reward for exchange transactions, but over time, its repertoire of functions has expanded significantly:
FTT plays a pivotal role in the creation of leveraged tokens on the FTX Exchange, where users can benefit from VIP discounts in the form of FTT, contingent upon the quantity of coins they hold, and are eligible to receive rewards for providing liquidity through futures positions.
To preserve its value, the exchange periodically repurchases and destroys its tokens, allocating a significant portion of its revenue towards this endeavour: 33% of trading fees, 10% of the reserve fund, and 5% of other commissions are dedicated to purchasing FTX tokens for subsequent burning.
FTT Token Utilizations:
One-third of the commissions generated from transactions on FTX are allocated towards repurchasing FTT tokens, which are subsequently burned, thereby reducing the total supply.
FTT tokens serve a dual purpose, facilitating reduced trading fees and providing an added layer of security for futures positions.
Gains accrued from significant market fluctuations are allocated among holders;
Through the acquisition of a white-label iteration of FTX’s over-the-counter portal and futures market, institutions and investors can settle expenses using FTT tokens;
Through the creation of leveraged tokens, projects are empowered to settle listing fees using FTT, thereby streamlining the process.
By staking FTT, users can unlock a range of benefits, including discounts, bonus votes, and exemptions from blockchain fees.
One of the key advantages of FTX Token (FTT) lies in its commission discounts. By leveraging FTT, members can enjoy significantly reduced fees and tighter spreads. Furthermore, active traders on the FTX Exchange can benefit from percentage discounts of up to 60%. Additionally, FTT serves as collateral, providing traders with insurance protection that ensures a net profit even in times of market volatility, thereby enabling them to continue trading without the risk of a margin call.
Beyond its utility in facilitating leveraged positions, FTT staking confers a multitude of benefits, including discounts, the chance to win coveted NFTs, participation in airdrops, bonus votes, and IEO tickets.
The Visionaries Behind FTX Token: Meet the Founders
The FTX Token, abbreviated as FTT, was co-founded by the visionary duo of Sam Bankman-Fried and Gary Wang.
Sam Bankman-Fried is the visionary co-founder and chief executive officer of FTX, a pioneering cryptocurrency derivatives exchange. In addition to his role at FTX, he also helms Almeda Research as its CEO. His impressive resume boasts a stint as director of development at the esteemed Centre for Effective Altruism, as well as a tenure as a trader at Jane Street Capital from 2014 to 2017.
Sam Bankman-Fried, a physics aficionado, holds a bachelor’s degree from the prestigious Massachusetts Institute of Technology.
Gary Wang is the esteemed co-founder and Chief Technology Officer at FTX: Cryptocurrency Derivatives Exchange, as well as holding the same position at Almeda Research. Prior to these roles, he honed his skills as a software engineer, having progressed from a software engineering intern at the tech giant Google. Additionally, he gained valuable experience as a software engineer intern at Facebook.
He holds a Bachelor’s degree in Mathematics and Computer Science from the prestigious Massachusetts Institute of Technology.
The Circulating Supply of FTX Token (FTT): A Closer Look
FTX is a premier cryptocurrency derivatives exchange, providing a comprehensive suite of products, including futures, leveraged tokens, and over-the-counter (OTC) trading, all tailored to meet the exacting standards of institutional investors.
The FTX Token serves as the linchpin of the FTX ecosystem, meticulously designed to amplify network effects and stimulate demand for FTT, thereby reducing its circulating supply.
As of February 2021, FTT boasts a circulating supply of approximately 94 million tokens, with a total supply of around 345 million.
The FTX Token Network: A Fortress of Security
FTT, an ERC-20-compatible exchange token, can be securely stored and efficiently managed via the Ethereum app on the Ledger Nano X/S hardware wallet, ensuring utmost protection and convenience for users.
The security audits for both FTT and leveraged tokens have been conducted by Blockchain Consilium, a reputable auditing firm.
Where to Acquire FTX Token (FTT): A Comprehensive Guide
The FTX Token, denoted by its ticker symbol FTT, can be conveniently bought, sold, and traded on a multitude of prominent exchanges, including:
Binance JEX: A Premier Cryptocurrency Derivatives Exchange
HitBTC, a stalwart in the cryptocurrency exchange landscape,
Huobi Global, a Pioneering Cryptocurrency Exchange
The esteemed cryptocurrency exchange, Binance.
New to buying, trading, or selling Bitcoin? Learn more about the process
here
.
FTX Token (FTT): The “Buy and Burn” Mechanism Fuels Deflationary Tokenomics
The FTX Token (FTT), the native cryptocurrency of the FTX derivatives exchange, boasts a deflationary nature. Notably, a staggering 20 million FTT tokens have been irreversibly removed from circulation, courtesy of the token’s innovative “buy and burn” mechanism.
FTX Exchange Embarks on Global Expansion, Unleashing FTT’s Potential in Emerging Markets
Over the past few months, FTX has been successfully expanding its presence into more prominent markets. Notably, the exchange has made inroads into Dubai and Busan, South Korea’s second-largest city. Having secured full approval to operate in Dubai, FTX has also forged an agreement with Busan to establish a Korean branch. As the exchange continues to penetrate new markets, its utility token, FTT, is poised to experience increased adoption, which will, in turn, lead to a higher number of token burns.
Concurrently, the FTT token has been expanding its exchange presence, with notable milestones achieved in recent months. Notably, Bitget became the 49th cryptocurrency exchange to list FTT for trading on its platform in February 2022. Furthermore, TokoCrypto introduced a new FTT/ETH trading pair on its platform, underscoring the token’s growing appeal.
The cryptocurrency exchanges boasting the highest trading volumes of FTT tokens are Binance, FTX, and Bitcoin.com, respectively.
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