What is FTT?

Question

What is FTT?

Accepted Answer

## TLDR
FTX Token (FTT) is the now-obsolete native cryptocurrency of the collapsed FTX derivatives exchange, originally designed to provide utility and rewards within its trading ecosystem.

1.  **Exchange Utility Token:** It was created to offer users benefits like trading fee discounts, collateral for futures, and staking rewards on the FTX platform.
2.  **Deflationary Model:** The token incorporated a "buy and burn" mechanism, where a portion of exchange fees was used to permanently remove FTT from circulation.
3.  **Post-Collapse Asset:** Following FTX's bankruptcy in November 2022, FTT lost its core utility and now trades primarily as a speculative asset tied to legal proceedings.

## Deep Dive
### 1. Original Purpose & Exchange Utility
FTT was launched in 2019 as the backbone of the FTX exchange ecosystem ([CoinMarketCap](https://coinmarketcap.com/currencies/ftx-token)). Its primary value proposition was to enhance the trader experience through integrated benefits. Holders could use FTT to secure discounts on trading fees, post it as collateral for futures positions, and stake it to earn rewards like exclusive access to token sales.

### 2. Tokenomics & The "Buy and Burn" Mechanism
The token was designed with a deflationary economic model. FTX committed to using 33% of all trading fees, among other revenues, to buy back FTT from the open market and permanently destroy or "burn" them ([CoinMarketCap](https://coinmarketcap.com/currencies/ftx-token)). This mechanism aimed to create scarcity by reducing the total supply over time, with over 20 million FTT tokens removed from circulation.

### 3. Current Reality: A Token Without a Platform
The collapse of FTX in November 2022 fundamentally changed FTT's nature. The token's utility is now obsolete as the platform it served no longer operates. Its price is almost entirely driven by developments in the ongoing FTX bankruptcy estate proceedings, creditor repayment schedules, and related legal news, making it a highly speculative asset.

## Conclusion
Fundamentally, FTT transitioned from a functional exchange token to a speculative asset whose fate is decided in bankruptcy court, not by market utility. What new purpose, if any, could potentially be assigned to this token in the future?

What is FTX Token (FTT)?

Deep Dive

1. Original Purpose & Exchange Utility

2. Tokenomics & The "Buy and Burn" Mechanism

3. Current Reality: A Token Without a Platform

Conclusion

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