FTX Token (FTT) is the utility token of the FTX exchange. It was previously one of the leading cryptocurrency exchanges in the world until its collapse and bankruptcy announcement in November 2022. The FTT token offered unique benefits to traders who held the token and traded on the FTX trading platform.

The exchange token of FTX is hosted on Ethereum and Solana blockchain ecosystems. In addition to offering trading fee discounts, FTX users who held FTT tokens could enjoy other discounts and earn staking rewards.

FTX is a cryptocurrency derivatives exchange founded by Sam Bankman-Fried and based in the Bahamas. It offers a wide range of digital assets for spot trading, leveraged trading, binary options, and OTC trading.

Previously, the FTT token had made significant gains and climbed the rankings to become one of the top cryptos by market cap, powered by the bull run in the crypto market during 2021. FTXs utility token ranked 21 in market capitalization in June 2022 but has declined in rankings following events leading up to FTX filing for bankruptcy and halting withdrawals on its platform in November 2022.

Since then, the FTT token price has declined sharply and experienced high levels of volatility. We recommend that you exercise caution while trading the FTX Token due to the crisis the exchange has experienced.

The FTX exchange was launched in April 2019, offering OTC, binary options, futures, and leveraged trading of cryptocurrencies. It is backed by FTX Exchange, with Sam Bankman-Fried as its Co-founder and CEO.

The FTX exchanges other Co-founder is Gary Wang, who, like Bankman-Fried, is a graduate of MIT. His previous experience includes interning as a software engineer at Facebook and Google.

FTX held three rounds of ICO in August, September, and October 2019, holding private sale events of its FTT crypto to raise funds. The initial supply of FTT was fixed at 350 million, 69% of which was allocated to investors, while 31% went to the founders and the FTX project.

In November 2022, the FTX exchange ceased withdrawals and new account creation, filing for bankruptcy in the wake of a crisis about mishandling and misappropriation of customer funds. The crypto community also unearthed an unhealthy link between FTX and Alameda Research, causing both companies to fold.

The results of the revelation not only caused the price of FTT to crash in the market but also shook investor confidence across the entire crypto market. Since then, several countries have halted FTXs operations while many cryptocurrency exchanges have delisted FTT trading pairs on their respective platforms.

As the backbone of the FTX ecosystem, the FTT token served many functions, including:

Receiving Discounts on Trading Fees on FTX

FTT holders who traded crypto assets using the FTX exchange could receive discounts on payment processor fees. However, users needed to hold a minimum of $100 worth of FTT in their accounts to access these promotional discounts.

Enjoying Other Special Rebates and Offers

In addition, users holding a specified minimum number of FTT crypto could also enjoy rebates on all OTC trading orders placed on the FTX exchange. They could also get a chance to upgrade their trading accounts by holding FTT tokens.

Accessing Airdrops of Certain Tokens Listed on FTX

FTT holders on FTX were entitled to receive weekly airdrops of specific tokens listed on the exchange. This option offered traders a unique and risk-free opportunity to diversify their portfolios without incurring additional costs.

Being Used as Collateral for Futures Trading

FTX Token could be used as collateral when indulging in futures trading on the exchange. In addition, FTX planned to use FTT as collateral when launching new services like margin trading services and for IEOs.

Crypto Asset to Trade and HODL

Prior to the collapse of the FTX exchange, the FTX Token (FTT) was one of the largest cryptocurrencies by market cap and was the utility token of one of the biggest cryptocurrency exchanges worldwide.

Stake to Earn Rewards

FTX also supported FTT staking to increase engagement levels within their community of users by rewarding them from fees generated. Staking FTT could let token holders earn higher referral fees, enjoy additional discounts, get voting rights on polls, enjoy higher airdrops, get a certain number of free ERC-20 and ETH withdrawals daily, and get tickets for IEOs hosted on the exchange.

Implementing a Token Burn Mechanism

FTX used one-third of trading fees earned to buy back FTT and burn the tokens regularly. The exchange planned to burn at least 50% of the total supply to create deflationary pressure and support the FTX Token price in the market.

The FTX Token enjoyed a good performance during the crypto market bull run, increasing in value as the exchange gathered more users, liquidity, and trading volume across the board. However, the decision for FTX and Alameda Research to file for bankruptcy has driven down trading volumes of the FTX exchange and hit investor confidence in the FTT token significantly.

From a high of $30.52 in 2022, the FTX Token price fell to a low of $1.25 in the aftermath of the FTX collapse. With several exchanges delisting the FTT tokens trading pairs, we recommend you exercise caution in trading this token. The events leading up to FTXs collapse underline the importance of DYOR (Do Your Own Research) before investing in any cryptocurrency, including FTT.

FTT is the native cryptocurrency token of the crypto derivatives trading platform FTX that launched on May 8, 2019. On Nov. 11, 2022, FTX filed for Chapter 11 bankruptcy protection in the U.S., and is currently undergoing proceedings. Some of the information below may not reflect the current standings of the FTX exchange, please proceed with caution when interacting with the FTT token.

The team behind FTX comprises some of the largest crypto traders over the past few years who, having found issues with most mainstream crypto futures exchanges, decided to launch their own platform. FTX claims that it stands out due to such features as clawback prevention, a centralized collateral pool and universal stablecoin settlement. FTX is a centralized crypto exchange launched by Sam Bankman-Fried in 2019, backed by significant trading companies in the industry, including Almeda Research, OTPP, Temasek, BlackRock, Coinbase Ventures and Sequoia Capital. As of 2022, the platform has over a million registered members, and the daily trading volume has reached billions of dollars.

In regards to clawback prevention, a significant amount of customer funds on other derivative exchanges have been claimed by socialized losses. FTX reduces this by using a three-tiered liquidation model.

On existing crypto futures exchanges, the collateral is fragmented across separate token wallets; this can be difficult for traders as it prevents positions from getting liquidated. On the other hand, FTX derivatives are stablecoin-settled and only require one universal margin wallet.

Another feature of the FTT are leveraged tokens, which allow traders to put leveraged positions without the need to trade on margin. If a trader wants to short Bitcoin with 3x leverage, they can simply buy a 3x short Bitcoin leveraged token on FTX. These tokens are ERC20-compatible and can be listed on any spot exchange. FTX currently offers XRP, BNB, TRX, BTC, ETH, EOS, USDT and LEO leveraged tokens.

A year after its founding, FTX Exchange introduced the exchange token called FTX Token or FTT. The FTT coin is an ERC-20 standard token that is actively used by ecosystem participants.

Initially, FTT was established as a reward for exchange transactions; however, over the years the list of functions has grown:

FTT is applicable in the creation of leveraged tokens on the FTX Exchange; users can receive VIP discounts in the form of FTT depending on the number of coins they own, and its possible to earn rewards for providing liquidity through futures positions.

In order to maintain its value, the exchange regularly buys back and burns its tokens, spending on the purchase of FTX: 33% of trading fees, 10% of the reserve fund, and 5% of other commissions.

FTT Token use cases:

1/3 of the commissions received from transactions on FTX are utilized to buy back FTT. Tokens redeemed in this way are burned;

FTT tokens are used to reduce trading fees and to secure futures positions;

Profits from massive market movements are distributed among the holders;

By purchasing a white label version of FTXs OTC portal and futures market, institutions and investors pay expenses in FTT tokens;

By creating leveraged tokens, projects can pay listing fees with FTT;

Users can stake FTT to benefit from discounts, bonus votes, and blockchain fee waivers.

One benefit of FTX Token (FTT) is commission discounts. Members pay a low fee and obtain tighter spreads. Traders use FTT as collateral, and those who are active on FTX Exchange see percentage differences of up to 60%. Traders get insurance protection, which ensures a net profit in moments of market volatility, then makes it possible to continue trading even without a margin call.

In addition to the fact that FTT is useful for opening positions with leverage, FTT staking also offers perks: discounts, the opportunity to win NFTs, participation in airdrops, bonus votes and IEO tickets.

The FTX Token or FTT was founded by Sam Bankman-Fried and Gary Wang.

Sam Bankman-Fried is the co-founder and chief executive officer at FTX: Cryptocurrency Derivatives Exchange. He is also the CEO of Almeda Research and worked as a director of development at the Centre for Effective Altruism. He was also a trader at Jane Street Capital from 2014 to 2017.

Bankman-Fried studied physics and has a bachelors degree from the Massachusetts Institute of Technology.

Gary Wang is the co-founder and chief technology officer at FTX: Cryptocurrency Derivatives Exchange. He is also the chief technology officer at Almeda Research. Before this, he worked as a software engineer, after moving up from a software engineering intern at Google. He was also a software engineer intern at Facebook.

He has a Bachelor's degree in mathematics and computer science from the Massachusetts Institute of Technology.

FTX is a cryptocurrency derivatives exchange that offers futures, leveraged tokens and OTC trading with a focus on institutional-grade solutions.

The FTX Token is the backbone of the FTX ecosystem, which was designed to increase network effects and demand for FTT as well as decrease its circulating supply.

FTT has a circulating supply of around 94 million tokens as of February 2021 and a total supply of about 345 million.

FTT is an ERC-20-compatible exchange token. The Ledger Nano X/S hardware wallet allows users to securely store and manage the FTT tokens via its Ethereum app.

Both the FTT and the leveraged tokens security audits are done by the Blockchain Consilium auditing firm.

FTX Token or FTT can be purchased, sold and traded on several exchanges, including:

Binance JEX

HitBTC

FTX

Huobi Global

Binance

If this is your first time purchasing, trading, or selling Bitcoin, you can learn more about the process here.