The FTX Token (FTT) is the utility token of the FTX cryptocurrency derivatives exchange platform. The token is, according to ftx.com, “the backbone of the FTX ecosystem”. The token can be used to deduct trading fees, serve as collateral against future positions, or be staked to earn interest and possibly win NFTs (non-fungible tokens).
What is FTX Exchange?
The FTX Exchange is a centralized cryptocurrency exchange that specializes in derivatives and leveraged products. It was founded in 2018 by Sam Bankman-Fried, an MIT graduate who worked at Jane Street Capital, and Gary Wang, the current CTO (Chief Technology Officer) and former Google software engineer. Sam Bankman-Fried and Gary Wang also co-founded Alameda Research in 2017.
FTT supports most commonly traded cryptocurrencies. It also offers a range of innovative trading options including derivatives, volatility products, options, and leveraged tokens, and provides spot market in over 100 trading pairs.
The FTT exchange has user-friendly desktop and mobile apps, making it accessible for beginners and seasoned professionals. The platform also provides a comprehensive range of order types, from market orders to trailing stop orders.
The exchange sets out to solve problems faced by other derivative exchanges, including tedious trading processes and poor liquidity.
Why is it gaining traction?
The FTT Token has had a recent surge in market prices. One of the biggest reasons is that it has recently acquired the US derivatives firm LedgerX, therefore gaining access to a wider market. Though FTT remains unregulated in the United States, American investors can access their partner FTX.US. However, FTT.US offers less products compared to FTX global and requires more account verification.
Aside from that, FTX has also partnered up with NBA superstar Stephen Curry. The exchange has agreed to give Stephen Curry an equity stake in FTX.com and support the Curry’s foundation Eat.Learn.Play.
The FTX exchange also has a strong international presence. It follows the regulations imposed by European and Asian authorities, and its founders’ philosophy on effective altruism has given the platform a good reputation. The FTT has even launched a climate program that funds climate research and helps the platform achieve its goal of becoming carbon neutral.
The FTX exchange is a relatively stable platform. Its native token, the FTT Token, is becoming more stable as its platform establishes itself further. Though cryptocurrencies are said to be volatile, the FTT Token has proven to be stable and strong.