What Is FTX Token (FTT)?

FTX Token (FTT) is the native utility token of the FTX cryptocurrency derivatives exchange platform. FTX offers over-the-counter (OTC) trading, leveraged tokens, and futures trading capabilities. Derivatives are financial contracts tradable on exchanges between two or more parties. Futures contracts, a type of derivative, obligate parties to execute transactions at predetermined prices and times. OTC securities trade through dealer-broker networks directly on the platform without formal exchange listings.

FTX's Mission

Futures exchanges currently face several significant challenges that impede industry development. FTX aims to address these issues and elevate the derivatives market to institutional standards. Launched in April, FTX's order books quickly became among the most liquid globally. Recently, FTX futures and OTC trades collectively achieved over $100 million in daily trading volume.

Despite the challenging nature of this goal, FTX secured impressive backing from leading business figures who recognized the need for a well-designed derivatives exchange. The platform conducted a token sale to build its community and accelerate growth.

FTT Use Cases

FTX provides various services to meet investor needs:

• Options Trading: Users can select desired options and receive trading quotes within 10 seconds. Transactions are optional, with no obligation to accept offers.
• Futures and Perpetual Futures: Over 80 cryptocurrencies, including lesser-known ones, can be traded as futures contracts on FTX. The platform also offers perpetual futures with no expiration dates—a feature unique to cryptocurrencies due to their 24/7/365 pricing.
• Prediction Markets: Traders can place bets on real-world events such as US presidential elections through the FTX trading platform.

What Exactly Is FTT?

FTT is one of the products developed on the FTX exchange. It stores value, can be traded, and facilitates transactions. Additionally, FTX has designed incentive mechanisms to reduce circulating supply, enhance network effects, and support token value.

FTT Advantages:

Reduced trading fees represent one of the primary benefits of adopting FTT. Using crypto futures provides tighter spreads along with lower commissions. Traders can also use FTT tokens as collateral for future positions. The insurance protection that comes with FTT can shield traders from clawbacks. During high market volatility, this insurance provides a buffer that allows traders to continue trading without facing margin requirements.

Furthermore, FTT supports staking—a procedure allowing FTT token holders to validate transactions. Staking FTT offers multiple benefits, including opportunities to win free NFTs and receive additional discounts.

FTT Token Utilities

FTT's utility continues to expand:

• Token Burning: One-third of FTX exchange fees are used to repurchase FTT. This process will continue until 50% or more of all FTT are burned.
• Collateral: You can use FTT as collateral for future positions, increasing demand and utility. This scenario applies to other trading activities like margin trading.
• Trading Fee Discounts: Users holding specific amounts of FTT for set periods can pay reduced trading fees, potentially increasing demand for FTT.
  • OTC Trade Discounts: Users can receive discounts on all OTC trades by holding sufficient FTT on FTX.
  • OTC Burn: FTT buybacks and burns occur based on OTC trading volume and revenue.
• Socialized Gains: FTX conducts backtests and live simulations to observe performance during major market downturns. FTX significantly enhances its insurance fund through a unique liquidity provider backstop program.
• White Label Solutions: Some crypto institutions interested in purchasing white-label versions of FTX's OTC and futures exchange can acquire these solutions alongside FTT.

FTX (FTT) Company History

FTX was established in Antigua and Barbuda with headquarters in the Bahamas, launching in 2019. The latest revised date for the FTX Whitepaper was September 2022. Leading Wall Street quantitative firms and technology companies, including Jane Street, Optiver, Susquehanna, Facebook, and Google, contributed members to the FTX team. Sam Bankman-Fried, FTX's CEO, previously worked as a trader in Jane Street Capital's global ETF division. Before founding FTX, founder and CTO Gary Wang worked as a software engineer at Google.

Recent FTT Price and Performance

FTT reached its all-time high (ATH) of $84.967 on September 9, 2021. The lowest price since ATH was $21.023 on June 15, 2022.