CoinMarketCap takes a deep dive into FTX Token (FTT), the official currency of FTX – a crypto exchange and derivatives trading platform, that has seen over 200% gains since June 2021 lows, due to increased public exposure and the launch of new protocols and partnerships.
FTX Token (FTT) is the exchange token of the FTX ecosystem, and will serve as collateral for futures positions, getting discounts on trading fees, receiving OTC rebates and more. The FTX trading platform provides leveraged tokens, OTC and futures trading, and plans to become the top crypto derivatives exchange in the blockchain world.
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Sudden Burst Of The FTX Token In The Past 72 Hours
The FTX Token (FTT) took full advantage of the ongoing bullish run of the crypto market and spiked to its new all-time high of $66.50, which represents a whopping 42% increase in the token’s price. The FTX token didn’t stop there as it broke the threshold of $66.50 and set a new high of $70.21.
All of these major updates came in a short period and explains the massive increase of FTT token’s market cap, which increased from 4.46 billion to 6.58 billion in a matter of 24 hours. The price of the FTT token has decreased a little and is currently trading at $64.96, however, crypto experts see it as a temporary pullback. Once the support levels are maintained by FTX, the token is expected to break more records in the upcoming weeks.
How Does FTX Token (FTT) Work?
FTX trading platform can be termed as a futures exchange that aims to improve the imperfections of other crypto exchanges and provides its users with a platform that is easy-to-use and profitable for everyone. The official currency of the FTX trading platform is FTT, which can be used to acquire discounts and staking benefits from FTX.
The FTX trading platform charges minimal exchange and leveraged token fees. However, it provides exceptions for new products like the spot exchange, margin trading and options. It does not charge any deposit fees or withdrawal fees, except for ETH, ERC-20 tokens, or BTC withdrawals (only < 0.01 BTC withdrawals are charged with a fee).
How To Stake FTT Tokens?
The FTX platform provides a platform for users to stake their FTT tokens and gain rewards based on a variety of factors such as referral rate, maker fee rebate and bonus votes, among other things.
Here are some of the benefits of staking FTT tokens on the FTX platform:
Referrers who stake their FTT get a larger percentage of their references' earnings.
Stakeholders receive free withdrawals of ERC20 and ETH daily.
FTT stakers get a discount on FTT fees and also maker fee rebates.
The Initial Exchange Offerings (IEO) for various NFTs and token projects on the FTX platform require tickets, which will be given to FTX stakeholders based on the number of their FTT tokens staked on the platform.
FTT stakeholders become eligible for getting extra votes (depending upon their trading volume and number of FTT tokens) on the FTX platform.
Note: The FTT tokens can only be unstaked after a period of 14 days. If a user requests their tokens to be unstaked they will not be rewarded for that period, however, the good news is that users can pay a fee and get their tokens unstaked immediately.
The Vision Behind FTX Token (FTT)
The team behind the FTX platform is made up of veterans that have worked in Wall Street and big tech companies like Facebook, Google, Jane Street, Optiver and Susquehanna. With a diverse background in equity derivatives trading, the FTT token creators plan to overtake Bitmex and OKEx which are the leading crypto derivatives exchanges in the blockchain world.
The CEO of FTX, Sam Bankman-Fried (SBF) co-founded the exchange with Gary Wang (CTO) and Nishad Singh (Head of Engineering). After founding Alameda Research, a crypto quant trading firm and liquidity provider, the trio started working on FTX, an exchange "by traders, for traders." SBF felt the crypto space was lacking a professional-grade trading platform for complex products. FTX is headquartered in crypto-friendly Hong Kong, where SBF is also based. The altruistic founder has once served as a director at The Centre for Effective Altruism, and commits 1% of FTX net trading fees to charity. SBF is also an influential figure in the crypto space, with over 290K Twitter followers.
Unique Features Of FTX Token (FTT)
According to FTX's official website, its trading platform mechanisms are hard to replicate by anyone which makes it a unique asset in the blockchain world.
The FTX trading platform provides its users with leveraged tokens that enable traders to enter into short or leveraged positions without having to trade on margin. A trader who wishes to buy 6x short Ethereum, for example, can simply purchase a 6x short Ethereum leveraged token on FTX. ERC-20-based leveraged tokens can be listed on any spot exchange and leveraged tokens like BTC, ETH, EOS, USDT and others can be acquired by FTX platform users.
Universal Stablecoin and Centralized Collateral Pool
In many futures exchanges, collateral is dispersed over several distinct tokens and margin wallets, which makes it harder for traders to rebalance and avoid liquidating holdings. Therefore a centralized collateral pool and universal stablecoin settlement are needed. FTX derivatives are stablecoin-settled, requiring only one universal margin wallet to overcome these problems.
When an account goes beyond bankruptcy, it triggers socialized losses, clawbacks and auto-deleveraging. If a user has a collateralized futures position and markets move against their account to the point where their net asset value is negative, the losses have to be fulfilled by someone. However, because no exchange can seize assets from a bankrupt account's owner outside of the system in crypto, the account owner is trapped with other users, the ones who aren't getting liquidated and will be paying the bills.
The FTX trading platform aims to cut down the socialized losses that occur in many derivatives exchanges by employing a three-tiered liquidation strategy that minimizes the probability of clawback.
According to the FTX platform’s official website, the backstop liquidity provider scheme will be sufficient to avoid any clawbacks. According to their internal tests, market movements of 40% in 20 minutes did not result in clawbacks and the combination of on-exchange liquidity and backup liquidity providers was able to supply to all of the almost bankrupt accounts before they fell under.
Considering USDT's past volatility, many major crypto businesses need the means to hedge USDT deltas, and USDT futures will provide that feature to them.
Use Cases Of FTT Token:
Trading Fees: FTX futures trading fees are less and OTC spreads are tighter as compared to other crypto exchanges.
White Label Solutions: A white label variant of the FTX OTC site and futures market has piqued the curiosity of crypto institutions and large investors for which the purchase will be offered in FTT token.
FTT as Collateral: To increase the demand for FTT in the long run, it can be used as collateral in futures trading.
FTT Token Value: The value of the FTT token is directly proportional to the future expansion and upgrades of the FTX platform. Holders of the FTT token can expect a rise in their holdings as the price of FTT increases.
Create Leveraged Token Listing: Upcoming projects can pay a fee and generate leveraged tokens with their coin.
Token Burn/Revenue Share: The FTT that is bought from FTX will have a transaction fee, one-third of which will be utilized to repurchase FTT tokens and later become a part of the burning process.
Extra Gains For FTT Holders: When big market fluctuations will occur in the crypto market, FTT holders will profit from the FTX backup liquidity fund.
FTX Token (FTT) Tokenomics
There are a total of 350,000,000 FTT tokens. The current circulating supply is 170,923,766 FTT. 13,171,373 FTT tokens are burned and 64,862 FTT are yet to be burned. For the updated stats, visit this link.
FTX Token (FTT) Price
FTX Token (FTT) is now trading at $66.02, as of Sept. 6, 2021. Its 24-hour trading volume on exchanges is around USD $686,727,101.56.
FTX Token (FTT) Future Outlook and Price Prediction
As of Sept. 6, 2021, FTX Token (FTT) is trading at $66.02. Whether FTX Token (FTT) will hit $100 in the near future depends on a lot of factors.
FTX is a trading platform which means that cryptocurrency users who want to invest in any major cryptocurrency will eventually know or try the platform at some point in time. This provides a major advantage for FTT holders as they can expect the token’s price to skyrocket with the additional number of users joining the platform and use it as a trading platform daily.
The technical indicators of the FTT/BUSD chart may spike an increase in the price of the FTT token if it breaches the $66 mark.
The market is bullish and everyone knows it. FTT has been riding the wave of the bullish market and has broken its all-time highs. The good news is that crypto analysts believe the market to remain bullish in the upcoming weeks as Bitcoin and Ethereum break their all-time highs. If this prediction becomes true, then the FTT token may easily break its all-time high of $70.21 and go to the moon.
Major League Baseball features 30 clubs and is worth over $2.2 billion in 2021. Overall, the value goes over $66 billion. FTX signed a (reported) five-year agreement with Major League Baseball and became the first cryptocurrency exchange to endorse a major sports league (MLB). Starting with this year's MLB All-Star Game, the long-term partnership will see the company's emblem appear on umpire jerseys throughout all matches, establishing FTX as the official cryptocurrency exchange brand of the North American baseball league. This will give a major boost to the FTT token and the FTX trading platform as the viewership of MLB stood at 8,311,000 viewers in July 2021 with the number scheduled to increase in the upcoming months.
A great reason to invest in FTX can be the past successes of its creators which include Alameda Research, a cryptocurrency trading platform that is worth over $100 million and manages over $70 million in digital assets and trades around $1 billion per day. The FTX trading platform creators also created the OTC RFQ system which scaled to $30 million in volume per day. This track record of immense success and rising popularity of the FTX platform is a great attraction for major whales in the crypto world, and possibly even better news for FTT holders.
Now, considering a lot of volatile factors, it is very difficult to say in which direction FTX Token (FTT) will tilt, which is why it is advisable to keep an eye on market indicators and technical opinions of cryptocurrency experts before investing in this token.
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